Page 36 - The Indian EYE 061022

BUSINESS EYE JUNE 10, 2022 | The Indian Eye 36

US or China: Who is India’s

biggest trading partner?

India’s trade deficit soared to record $23. 3 billion in May as export growth slowed to

15-month low, while imports zoomed on high oil & commodity prices

OUR BUREAU
Mumbai
he latest trade figures for the
financial year 2021-22 (FY
T2022) suggest that the US
has surpassed China to become In-
dia’s top trading partner, reflecting
strengthening economic ties between
the two countries. It also hints at In-
dia’s warming relations with the US.
India recently became a member of
the Indo-Pacific Economic Frame-
work (IPEF) and the US- and WEF-
led First Movers Coalition.
Previously, China was India’s
top trade partner from FY 2014 to
FY 2018 and again in FY 2021 while
the UAE was India’s largest trading
partner in the intervening years.
As per data released by the Min-
istry of Commerce, bilateral trade
between India and the US in FY
2022 stood at US$119.42 billion, ac-
counting for 11.5 percent of India’s Union Minister for Commerce and Industry Piyush Goyal with United Arab Emirates’s Minister of Economy Abdulla bin Touq Al Marri
total trade, which stood at US$1.03
trillion. India-US bilateral trade lion as compared to US$86.4 billion commerce ministry official, who commodity prices. Preliminary data
has witnessed considerable upsurge in the previous fiscal (FY 2021), wished to not be named. released by the commerce depart-
compared to the US$80.51 billion re- when China was India’s largest trad- The figures released by the min- ment showed that in May exports
corded just the previous year. ing partner. istry show that the US beat Beijing as grew 15. 5% to $37. 3 billion, the
India’s exports to the US in- During FY 2022, exports to Chi- India’s top trading partner in FY22 most sluggish pace of expansion since
creased to US$76.11 billion in FY na rose to US$21.25 billion, marking — the India-US bilateral trade was February 2021. In contrast, imports
2022, compared to US$51.62 billion a slight increase from US$21.18 bil- $119.42 billion and the India-China shot up over 56% to $60. 6 billion,
in FY 2021, while imports increased lion in FY 2021. Simultaneously, im- bilateral trade was $115.42 billion. marking only the second time that
to US$43.31 billion compared to ports too registered a considerable Chinese spokesperson Zhao Li- the value of shipments into the coun-
US$29 billion in the previous fiscal. increase, soaring to US$94.16 bil- jian contested the data during a press try has gone past the $60-billion lev-
India maintained a positive trade lion from about US$65.21 billion in conference on 31 May. “According to el after $60. 7 billion in March 2022.
balance with the US, recording a FY 2021. According to the data, the the statistics of Chinese competent While oil imports rose al-
surplus trade of US$32.79 billion. In trade gap between India and China authorities, bilateral trade volume most 92% to $18. 1 billion — ac-
fact, as per the statistics, among In- in FY 2022 rose to US$72.91 billion between China and India stood at counting for almost 30% of the
dia’s top 10 trading partners, the US from US$44 billion in FY 2021. $125.66 billion in 2021. On that basis, goods shipped into the country in
is the only country with which India Now, the Indian commerce China remains India’s largest trading May — gold was the other major
has a positive trade balance. The ministry has rejected Beijing’s con- partner.” He added that the “dispari- driver, jumping 8. 6 times to $5. 8
other top trading partners include tention that China is India’s largest ty in trade figures published by China billion to emerge as the second
UAE (US$72.9 billion), Saudi Arab trading partner and not the US as and India is a result of different sta- largest item in the import basket.
(US$42.85 billion), Iraq (US$34.33 the ministry’s data published over tistical measurement scales”. Besides, coal imports soared
billion0, Singapore (US$30.10 billion), the weekend showed. The figure he quoted — $125.66 three times from just un- der $2 bil-
Hong Kong (US$30.08 billion), etc. “We have a very robust data billion — is based on the calendar lion in May 2021 to $5. 3 billion last
According to the data, China system and abide by international year 2021, not the financial year. month. As prices soared, its share of
emerged as India’s second largest norms on data neutrality and data Meanwhile, it has been reported India’s imports was just a little lower
trading partner in FY 2022, regis- sanctity. Therefore, there’s no scope that India’s trade deficit soared to than electronics ($5. 4 billion). Price
tering 11.12 percent of India’s total for any kind of manipulation. The record $23. 3 billion in May as ex- of crude petroleum, coal and gold
trade. India’s bilateral trade with Chinese, on the other hand, operate port growth slowed to 15-month low, went up significantly after Russia’s
China amounted to US$115.42 bil- in an opaque manner,” said a senior while imports zoomed on high oil & invasion of Ukraine.

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