India's Trade deficit

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Trade deficit

A Trade deficit occur when a country's import exceed its export during a period of time. It can be long term or short term. It depends upon the countries production, goods and services. 
It mainly occur because of lack of efficient to produce its own product or due to the lack of resource or depending on the other country resource.

India Trade deficit

The highest imports of the goods such as crude oil, electronic goods, iron and steel, chemicals, machinery,coke, fertilizers its contributed 70% of total import in 2018 to 2019 which have opened the door for many exports.
India's overall trade deficit including good and services has increased up to USD 103.63 billion in 2018-2019 from USD 84.45 in previous financial year.
As per the foreign policy 2015-20 the Indian government aim is to increase export from USD 465.9 billion to  about 900 billion by 2019 to 2020 and to rise the India's share in world export from 2% to 3.5%. 2019-20 will be known in shortly.

US trading partner


US exceed china to become India a trade partner. According to the data from the commerce ministry during 2018-2019 the bilateral trade between US and India stood at USD 87.59 billion. Similarly India with china for USD 87.07 billion.
During April-December 2019-2020 the bilateral trade between US and India is USD 68 billion and the trade between India and china is USD 64.96 billion.
India has trade surplus of USD 16.85 billion with US and  it has deficit of  USD 53.56 billion with neighbouring countries.
"FTA (free trade agreement) with  US be very beneficial to India as the US is the biggest market for domestic goods and service" Federation of Indian Export organisations Director General Ajay sahai said.

India china trade deficit

Total bilateral trade was about USD 93 billion in 2019, up 1.6% year on year. China exports to India stood at about USD 75 billion, up 2.1%, and India export to china total USD 18 billion, down 0.2% year on year.

India's top 10 imports

Import purchase during 2019
  1. Mineral fuels  USD 153.5 billion (32% of total imports)
  2. Gems, precious metals USD 60 billion (12.5%)
  3. Electrical machinery and equipment USD 50.4 billion (10.5%)
  4. Machinery including computers USD 44.1 billion (9.2%)
  5. Organic chemicals USD 20.5% (4.3%)
  6. Plastics, plastic articles USD 14.6 billion (3.1%)
  7. Iron, steel USD 11.6 billion (2.4%)
  8. Animal/vegetable fats. oils, Waxes USD 9.6 billion (2%)
  9. Optical, technical, medical apparatus USD 9.5 billion (2%)
  10. Fertilizers USD 7.3 billion (1.5%).

Reference

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