As per the Central government data, China replaced the United Arab Emirates (UAE) as the 2nd largest export destination for India in FY21. The United States (US) remained as India’s top export partner.
- China’s share in India’s export rose to 7.29 percent in FY21 from 5.3 percent of FY20 (Whereas the imports from China declined marginally in FY21).
- Iron ore, organic chemicals, and petroleum were the top exports to China in FY21.
Top 5 Export Partners in FY21:
| Country | Export value FY21 ($Billion) | % Change (Year-over-year) |
|---|---|---|
| US | 51.6 | -2.8 |
| China | 21.2 | +27.5 |
| UAE | 16.7 | -42.2 |
| Hong Kong | 10.2 | -7.4 |
| Bangladesh | 9.1 | +10.8 |
Analysis of India’s Import, Export:
i.India’s exports and imports in FY21 reduced by 7.3 percent and 18 percent to $290.6 billion and $389.2 billion, and led to a trade deficit of $98.6 billion.
ii.In FY21 the shipments to the neighbouring country rose by 27.53 percent to $21.18 billion, but the overall shipments declined by 2.78 percent to $51.63 billion.
iii.Farm products and pharmaceuticals drove the exports in FY21. As per the data provided by the Agricultural and Processed Food Products Export Development Authority (Apeda), M Angamuthu, exports of farm products viz, rice, wheat, maize, other cereals, and processed food products were increased in FY21.
iv.As per the data of the World Trade Organization (WTO), the volume of world merchandise trade is expected to increase by 8 percent in the calendar year 2021 after having fallen 5.3 percent in 2020.
Note – India aims to post $400 billion of merchandise exports in FY22.
Recent Related News:
According to the Global Trade Update (May 2021) released by the United Nations Conference on Trade and Development (UNCTAD) – India, China, and South Africa performed ‘relatively better’ than other major economies in imports & exports during the 1st Quarter of 2021.
About China:
Capital – Beijing
President – Xi Jinping
Currency – Renminbi
