What Does “India's Largest Trading Partner” Mean in 2024?

India's trading relationships play a crucial role in the nation's economic growth, affecting everything from exports and imports to industrial development and diplomatic ties. But which country holds the coveted spot as India’s largest trading partner today? What trends and changes have emerged in 2024 to redefine India’s top trade alliances? In this Q&A-style article, we'll dive deep using data, insights, and analysis from leading sources like Seair Exim Solutions and recent trade reports.

Who Is India's Largest Trading Partner in 2024?

Q: Has there been any shift in India’s top trading partner in 2024?

A: Yes. In 2024, China regained its position as India’s largest trading partner, slightly surpassing the United States. India's merchandise trade with China reached $118.4 billion in FY24, while trade with the US stood at $118.2 billion.

• China: $118.4 billion

• US: $118.2 billion

However, there is disagreement among trade datasets, and some sources, including India’s government and international organizations, still cite the United States as India’s largest trading partner for merchandise and services combined, with trade exceeding $131.84 billion in FY25.

Q: Why does this shift matter?

A: The position of India’s biggest trade partner reflects both economic strategy and global geopolitics. Changes highlight which sectors are growing or facing challenges, and also where India is most dependent on foreign goods or services.

What Is the List of India’s Largest Trading Partners in 2024?

Q: Where does India trade most, and who are the top countries for exports and imports?

A: Here is a summary of India’s top trading partners in 2024 (using several primary sources):

What About India’s Largest Export and Import Partners?

Q: Who buys the most from India, and who sells the most to India?

A:

• Top Export Partners of India:

  1. United States — $77.52 billion (17.73%)

  2. United Arab Emirates — $35.62 billion (8.15%)

  3. Netherlands — $22.37 billion (5.12%)

  4. China — $16.66 billion (3.81%)

  5. Singapore — $14.14 billion (3.30%)

• Top Import Partners of India:

  1. China — $101.75 billion (15.06%)

  2. Russia — $61.43 billion (9.1%)

  3. United Arab Emirates — $48.02 billion (7.11%)

  4. United States — $40.77 billion (6.04%)

  5. Saudi Arabia — $31.81 billion (4.71%)

Why Is China India's Biggest Trading Partner Despite the Trade Deficit?

Q: India imports more from China than it exports—how does this impact the relationship?

A: China’s dominance as India’s largest import partner is driven by large inflows of electronics, machinery, pharmaceuticals, and chemicals. India’s exports to China are mainly raw materials like iron ore, cotton, and marine products.

Trade Deficit:

• India’s trade deficit with China hit $85 billion in FY24 and has grown in 2025, which is a major concern for policymakers. This trade gap highlights India’s heavy reliance on Chinese imports, sparking concerns over growing economic dependence.

Which Products Drive Trade With India’s Biggest Trade Partners?

Q: What are the main products traded between India and its key partners?

A:

• China: Electronics, telecommunications equipment, chemicals, machinery to India; iron ore, cotton, seafood from India.

• United States: Pharmaceuticals, textiles, gems, jewellery, IT services from India; aircraft, electronics, machinery to India.

• UAE: Crude oil, precious stones, gold to India; petroleum products, textiles, rice from India.

• Russia: Fertilizers, diamonds, energy products to India; pharmaceuticals, tea, chemicals from India.

• Saudi Arabia/Iraq: Largely crude oil to India.

How Have India’s Trade Relationships Changed in Recent Years?

Q: Was there a time when another country was India’s largest trading partner?

A:

• 2013-18: China was consistently India’s biggest trade partner.

• Post-2021: The United States became India’s top trading partner, driven by surging exports of IT, gems, and pharmaceuticals.

• FY24: China narrowly overtook the US in merchandise trade, but the overall partnership with the US (goods and services) still outpaces China.

What Are The Economic and Strategic Implications For India?

Q: Is it good for India to have China as its largest trading partner?

A:

• Positives: Access to affordable goods, crucial industrial components, and wider product variety.

• Negatives: Major trade deficit, reliance on Chinese goods, potential strategic vulnerabilities.

Q: How does the United States fit as India’s biggest trading partner?

A:

• Positives: A healthy trade surplus, diversified trade in both goods and services, and closer diplomatic ties.

• Challenges: Market access restrictions, tariffs in some sectors (especially engineering exports).

How Can Exporters, Importers, and Businesses Use This Data?

If you’re an Indian trader, manufacturer, or exporter, knowing the top trading partners of India 2024 helps you:

• Identify target markets for expansion

• Understand competitive advantages

• Plan sourcing strategies to hedge against risks from over-dependence

For the latest, detailed, and actionable trade data, explore resources at Seair Exim Solutions. These platforms provide up-to-date statistics, trends, and expert insights.

Frequently Asked Questions (FAQs) About India’s Largest Trade Partners

Q: Who is India's largest trading partner in 2024?

• A: China by merchandise value; by combined merchandise and services, many sources still rank the United States as number one.

Q: Who are the top 5 trading partners of India in 2024?

• A: China, United States, UAE, Russia, Saudi Arabia.

Q: Where can I get more detailed, client-oriented trade data?

• A: Visit seair.co.in/blog/top-trading-partners-of-india.aspx and seair.co.in for regular updates, live demos, and consulting services.

Conclusion

Understanding India's largest trading partner 2024 is not just a statistical exercise—it has profound implications for business decisions, government policy, and the country’s place in the global marketplace. In summary, China and the United States remain the top contenders for the position of India’s biggest trading partner, but as we have seen, the dynamics are fluid and shaped by everything from global politics to technological trends.

For anyone seeking to grow, diversify, or optimize their trade business, using trusted, frequently updated resources like those offered by Seair Exim Solutions is essential for staying ahead of the curve in the rapidly evolving landscape of India's top trading partners.

For further reading, data requests, or to arrange a live demo:

• https://www.seair.co.in/blog/top-trading-partners-of-india.aspx

• https://www.seair.co.in/