Largest Trading Partner of India

India, as one of the fastest-growing economies in the world, has a robust trade network with numerous countries across the globe. Understanding who the largest trading partners of India are can provide valuable insights into the country's economic landscape and its trade relations with other nations. According to the global trade data and Asia trade data, India’s total exports reached $441.78 billion, an increase of 5% from the last year, while India’s imports accounted for $702.64 billion in 2024, a 5% increase from the previous year. Based on the latest trade data on India’s biggest trade partners, the USA is India’s biggest export partner as per the US import data, while China is India’s biggest import partner, as per China export data. India had a total trade volume of $1.14 trillion in 2024, with the help of India’s biggest trade partners. In this article, we will explore India's largest trading partner, as well as its top import-export partners and their contributions to India's trade landscape.

Who is the Largest Trading Partner of India?

China is currently India's largest trading partner, accounting for a significant portion of India's total trade volume, as per the data on India-China trade. The trade relationship between India and China has grown exponentially over the years, with both countries benefiting from the mutual exchange of goods and services. China is a major exporter of electronics, machinery, and chemical products to India, while India exports raw materials such as iron ore, cotton, and gems to China. Along with China, the US is also a top trade partner of India, as per the US trade data.

India's Top Trading Partners: Top 10 Import Partners of India

India's top trading partners are crucial for the country's economy. Among the top 10 import partners of India are countries like China, the United States, Saudi Arabia, and the United Arab Emirates. These nations play a significant role in facilitating the import-export dynamics of India, contributing to its economic growth and global trade relations. China is India's biggest trade partner for imports, as per India-China trade data. India's top 10 import partners as per the latest shipment data for 2024 include:

1. China: $108.93 billion (15.5%)

China has long been India's largest trading partner, accounting for a significant portion of India's imports. With a diverse range of goods exported to India, including electronics, machinery, and textiles, China holds a prominent position in India's import market.

2. Russia: $64.26 billion (9.1%)

Russia is another key import partner for India, particularly in sectors such as defense, energy, and pharmaceuticals. The strong trade relationship between India and Russia has led to significant imports from Russia, contributing significantly to India's economy.

3. United Arab Emirates: $60.13 billion (8.6%)

The United Arab Emirates (UAE) is a major trading partner of India, with a focus on sectors such as oil and gas, machinery, and precious metals. The close geographical proximity of India and the UAE has facilitated trade between the two countries, leading to substantial imports from the UAE.

4. USA: $43.05 billion (6.1%)

The United States is an important import partner for India, with a focus on technology, machinery, and chemicals. Despite some trade challenges, the trade relationship between India and the USA continues to grow, with significant imports from the USA contributing to India's economy.

5. Saudi Arabia: $29.86 billion (4.3%)

Saudi Arabia plays a crucial role in India's import market, particularly in the oil and gas sector. With India's growing energy needs, imports from Saudi Arabia have become vital for India's economic growth and development.

6. Iraq: $29.77 billion (4.2%)

Iraq is a significant import partner for India, particularly in the oil and gas sector. The strong trade ties between India and Iraq have led to substantial imports from Iraq, supporting India's energy requirements.

7. Indonesia: $23.81 billion (3.4%)

Indonesia is an important import partner for India as per Indonesia customs export data, with a focus on commodities such as coal, palm oil, and rubber. The trade relationship between India and Indonesia continues to strengthen, with significant imports from Indonesia contributing to India's economy.

8. Switzerland: $21.88 billion (3.1%)

Switzerland is a key import partner for India, particularly in sectors such as pharmaceuticals, machinery, and chemicals. The high-quality products exported from Switzerland have led to significant imports to India, supporting India's growing industries.

9. South Korea: $20.82 billion (3%)

South Korea is an important import partner for India, particularly in sectors such as electronics, automobiles, and steel. The strong trade relationship between India and South Korea has led to substantial imports from South Korea, contributing to India's industrial growth.

10. Singapore: $20.42 billion (2.9%)

Singapore is a significant import partner for India, with a focus on sectors such as electronics, machinery, and chemicals. The strategic location of Singapore as a trading hub has facilitated trade between India and Singapore, leading to substantial imports from Singapore.

Major Trading Partners of India: India's Top 10 Export Partners

India has a robust trading network with a diverse set of countries, making it one of the top players in the global export market. As per the latest data on the major Trading Partners of India, the top 10 export partners of the country include the United States, United Arab Emirates, China, Netherlands, and Singapore among others. These partnerships reflect the strategic positioning of India in the international trade landscape. India's top trading partners for exports, as per the latest trade data for 2024 include:

1. USA: $80.79 billion (18.3%)

The United States is India's largest trading partner as per the data on US imports from India by HS code, accounting for a significant portion of India's total exports. The two countries have a strong economic relationship, with the USA being a key market for Indian goods such as textiles, pharmaceuticals, and machinery.

2. United Arab Emirates: $37.76 billion (8.5%)

The United Arab Emirates is another important export partner for India, with trade between the two countries continuing to grow. The UAE serves as a hub for re-exporting Indian goods to other countries in the Middle East and North Africa region.

3. Netherlands: $24.63 billion (5.6%)

The Netherlands is a major trading partner for India in the European Union. Dutch companies have invested heavily in India, and trade between the two countries includes chemicals, diamonds, and textiles.

4. Singapore: $15.87 billion (3.6%)

Singapore is a key export destination for Indian products, with trade between the two countries encompassing electronics, petroleum products, and pharmaceuticals. The two countries also collaborate in areas such as defense and maritime security.

5. China: $15.14 billion (3.4%)

Despite political tensions, China remains one of India's top export partners. Trade between the two countries includes items such as chemicals, machinery, and iron and steel products.

6. United Kingdom: $14.29 billion (3.2%)

The United Kingdom is an important market for Indian goods, with trade between the two countries covering sectors such as textiles, automobiles, and IT services. The UK also serves as a gateway for Indian companies looking to expand into Europe.

7. Saudi Arabia: $12.27 billion (2.8%)

Saudi Arabia is a significant export partner for India, with trade between the two countries dominated by petroleum products, chemicals, and textiles. The two countries also collaborate in the energy sector.

8. Bangladesh: $11.48 billion (2.6%)

Bangladesh is a key market for Indian goods, especially in sectors such as textiles, pharmaceuticals, and machinery. The two countries have a shared history and continue to strengthen their trade ties.

9. Germany: $10.40 billion (2.4%)

Germany is a major trading partner for India in the European Union, with trade between the two countries focusing on automobiles, chemicals, and engineering goods. German companies have also invested heavily in India.

10. Italy: $8.46 billion (1.9%)

Italy rounds out the top 10 export partners for India, with trade between the two countries covering sectors such as textiles, leather goods, and machinery. The two countries also collaborate in areas such as fashion and design.

Contributions of India's Top Trade Partners to India's Trade

Each of India's trading partners contributes in a unique way to India's trade landscape. For example, the United States is a significant market for India's information technology services, while Saudi Arabia is a crucial source of oil for India's energy needs. The United Arab Emirates serves as a hub for re-exporting Indian goods to other countries in the Middle East and North Africa region. Overall, India's trade relationships with these countries are essential for fueling its economic growth and development.

Conclusion

The largest trading partners of India play a critical role in shaping the country's import-export landscape and driving economic growth. Understanding India's trade relations with countries like China, the United States, the United Arab Emirates, and Saudi Arabia provides valuable insights into the opportunities and challenges that lie ahead for India's global trade network. As India continues to strengthen its trade relations with key partners and explore new growth markets, the country's position as a major player in the global economy is likely to become even more prominent.