Foreign trade of India 2024: Exports, imports, and trade partners

Major trading countries/ partners

The table below presents India's top 5 trading partners based on the total trade volume (exports plus imports) in the 2023-24 year, using data from Tradestat.

Major trading commodities

Energy

• Crude Oil and Natural Gas

Crude oil is critical for India because it is central to its energy sector and overall economy. In April 2024, India increased its crude oil imports by 7.0 percent compared to the previous year's spending of $13.0 billion, reflecting its heavy reliance on foreign oil to meet energy needs. Domestic production also grew by 1.6 percent to 2.4 million metric tonnes (MMT), though still far short of the total demand.

India is the world's fourth-largest natural gas consumer. Its consumption is projected to increase by 4.9 percent annually from 2022 to 2050, driven by growing demand from the industrial sector, particularly oil refineries and fertiliser manufacturers. India's top natural gas consumers are fertilisers, the power sector, city gas distribution, and refineries.

Metals

• Gold

As the largest consumer of gold globally, India's substantial demand for gold highlights its cultural and economic significance. Gold's cultural importance in India is deeply rooted, with gold jewellery being integral to weddings and festivals. In April 2024 alone, gold imports were valued at Rs 25,978 crore, marking a significant 214 percent increase from April 2023. According to a World Gold Council (WGC) report, India's gold demand increased by 8 percent in the first quarter of 2024, reaching 136.6 metric tons.

• Silver

Silver is a valuable metal that is highly sought after worldwide, with India being a significant consumer. Like gold, silver holds cultural and economic importance in India. Silver has a wide range of industrial applications like electronics, solar panels, and medical equipment. In April 2024, India's silver imports reached Rs 1119 crore, a 21 percent increase compared to April 2023.

Other metals like aluminium, copper, and zinc are essential to India's industrial sector, with diverse transportation, construction, electronics, and manufacturing applications. Their widespread use significantly contributes to the nation's economic growth and industrial development, making them major trading commodities in India.

Agriculture Commodities

• Rice and Wheat

Rice and wheat are the two most important food grains in India. They serve as staple foods and are necessary to ensure food security for the country's large population. According to the Food and Agriculture Organization of the United Nations (FAO), India is the second largest producer of wheat and rice globally, following China.

The estimated global wheat supply for 2023-24 is 1056.9 million metric tons (MMT), slightly lower than the 1061.9 MMT in 2022-23.

The latest projections for the 2023-24 period show global rice production at 515.73 MMT. As of April 1, 2024, global ending stocks stood at 172.15 MMT.

• Cotton

Cotton is crucial to India's agriculture, accounting for about 23 percent of global production. India uses approximately 20 percent of the world's cotton as the second-largest consumer. The cotton textiles industry, which is one of India's oldest, makes a significant contribution to the economy, representing 14 percent of total industrial production and 4 percent of GDP, according to the Indian Trade Portal.

• Soybeans

Soybeans are a versatile commodity primarily used for oil extraction and animal feed production. They are a major crop in India, cultivated in the rainfed areas of central and peninsular India during the kharif season (July–October). India is the world's fourth-largest soybean-growing country by area but only fifth by total production. In the 2022-23 period, soybean production reached approximately 149.85 lakh tonnes.

• Spices

India's dominance in the global spice market is evident. The country exports various spices, such as red chilli, cumin, coriander, turmeric, fennel, fenugreek, cardamom, mustard, ginger, and black pepper. These spices find applications in cuisines worldwide and industries such as food, cosmetics, and pharmaceuticals. The country's export basket includes around 225 spices and spice products exported to over 180 countries, with leading destinations being China, the USA, Bangladesh, Thailand, the UAE and more.

Significant milestones in India’s foreign trade over the last 30 years

India's foreign trade has undergone significant transformations over the last 30 years, marked by a series of key milestones. These milestones include:

1. 1991 Economic Liberalisation: India initiated major economic reforms in 1991, spearheaded by Finance Minister Manmohan Singh. These reforms, known as LPG (Liberalization, Privatization, Globalization), dismantled the "license raj" system, devalued the rupee, reduced tariffs, and opened up the economy to foreign investment. These measures were critical in shifting India towards a market-oriented economy.
2. Growth in Foreign Investment (1992-2005): Following the liberalisation, foreign investment in India surged by 316.9 percent, reflecting the increased global interest and contributing significantly to economic growth.
3. Comprehensive Economic Partnership Agreements (2022): India signed the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in February 2022 and the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) in April 2022. Then, India and the UK launched negotiations for a Free Trade Agreement (FTA) in January 2022. These agreements aimed to enhance trade relations and economic cooperation with key partners.
4. Economic Growth (2018): India's GDP rose to $2.3 trillion, indicative of the economic growth driven by foreign trade and investments.
5. Production Linked Incentive Scheme (2020): Launched to expand domestic production in 14 key sectors, the PLI scheme aimed to reduce import dependency and promote exports.
6. Gati Shakti National Master Plan (2021): Introduced to enhance logistics efficiency and reduce costs, this plan aimed to streamline infrastructure development and support trade growth.
7. India's new Foreign Trade Policy (FTP) 2023: FTP was launched on March 31, 2023, and came into effect on April 1, 2023. The policy aims to increase India's exports to $2 trillion by 2030 and focuses on emerging areas such as pharmaceuticals, high-tech manufacturing, and e-commerce.
8. The India-EFTA (European Free Trade Association) Trade and Economic Partnership Agreement (TEPA) was signed on March 10, 2024, marking a historic milestone in India's growing partnership with the European Free Trade Association (EFTA) bloc. After 21 rounds of negotiations since 2008, this landmark agreement underscores a commitment to bolster trade, investment, intellectual property protection, and sustainable development between India and EFTA countries comprising Switzerland, Norway, Iceland, and Liechtenstein.

These milestones demonstrate India's evolving foreign trade policy, characterised by significant reforms and strategic agreements that have increased its economic growth and global trade presence.