In April 2025, the Ministry of Commerce and Industry (MoC&I) released trade data showing that the United States of America (USA) continued to be India’s largest trading partner for the 4th consecutive year in Financial Year 2024-25 (FY25), with bilateral trade reaching USD 131.84 billion.
- In FY25, China was India’s second-largest trading partner with total bilateral trade amounting to USD 127.7 billion, while the United Arab Emirates (UAE) ranked third with USD 100.5 billion in trade value.
Key Findings:
India–U.S. Trade Overview in FY25:
i.India’s exports to the USA grew by 11.6% in FY25 to USD 86.51 billion, compared to USD 77.52 billion in FY24.
ii.Imports from the USA rose by 7.44% to USD 45.33 billion, compared to USD 42.2 billion in FY24.
iii.The trade surplus in favour of India with the USA increased to USD 41.18 billion in FY25 from USD 35.32 billion in FY24.
iv.In 2024, India’s main exports to the USA were drug formulations and biologicals (USD 8.1 billion), telecom instruments (USD 6.5 billion), and precious and semi-precious stones (USD 5.3 billion), among others.
- Major imports from the USA included crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), and coal and coke (USD 3.4 billion), among others.
India–China Trade Deficit Widens:
i.In FY 2024–25, China remained India’s second-largest trading partner, with total trade at USD 127.7 billion, up from USD 118.4 billion in FY 2023–24.
ii.India’s exports to China declined by 14.5%, declining to USD 14.25 billion in FY 2024–25 from USD 16.66 billion in FY 2023–24.
iii.Meanwhile, imports from China increased by 11.52% to USD 113.45 billion, from USD 101.73 billion in the previous year.
iv.As a result, India’s trade deficit with China widened by 17%, reaching USD 99.2 billion in FY 2024–25, compared to USD 85.07 billion in FY 2023–24.
Note:China was India’s top trading partner from FY14 to FY18 and again in FY21. The USA has maintained the top position since FY22.
Future Outlook:
Bilateral trade between India and the USA is likely to grow, as both nations are working to increase trade in goods and services from USD 191 billion currently to USD 500 billion by 2030.
About Ministry of Commerce and Industry (MoC&I):
Union Minister– Piyush Goyal (Constituency- Mumbai North, Maharashtra)
Minister of State (MoS)- Jitin Prasada (Constituency- Pilibhit, Uttar Pradesh, UP)
