Top Indian Trade Balances

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Indian rupees

Crude oil, gold and smartphones were major factors behind India’s highest trade deficits by product. China and Switzerland placed first and second respectively among trade partners with which India experienced the highest negative trade balances.

India’s overall trade deficit for all products equaled -US$95.7 billion in 2016, up by 6.7% from -$89.6 billion for 2009.

Year over year, the -$95.7 billion shortfall represents a -24.3% reduction from the -$126.4 billion deficit that India incurred during 2015.

Top Indian Trade Balances by Product and Country

Product+

The following 10 leading products generated a surplus subtotal of $75.8 billion for India in its global trade during 2016. Metrics listed below highlight India’s strongest competitive advantages over worldwide trading partners.

  1. Processed petroleum oils: US$23.3 billion (Up 24.7% since 2009)
  2. Jewelry: $12.2 billion (Up 21.2%)
  3. Medication mixes in dosage: $10.7 billion (Up 225.7%)
  4. Cars: $6.2 billion (Up 127.6%)
  5. Rice: $5.3 billion (Up 121.7%)
  6. Diamonds (unmounted/unset): $5.1 billion (Up 245.9%)
  7. Frozen beef: $3.7 billion (Up 278.5%)
  8. Crustaceans (including lobsters): $3.6 billion (Up 353.1%)
  9. Yarn (85%+ cotton): $3.1 billion (Up 155.5%)
  10. T-shirts, vests (knit or crochet): $2.7 billion (Up 39.8%)

All of India’s top product surpluses expanded in value from 2009 to 2016 led by: lobsters and other crustaceans (up 353.1%), frozen beef (up 278.5%) and diamonds (up 245.9%).

The modest positive trade balances increases were for jewelry (up 21.2%) and refined petroleum oils (up 24.7%).

Product-

The 10 major products below accumulated a deficit subtotal of -$135.7 billion for India in international trade during 2016. India has demonstrated the severest competitive disadvantages in the exports and imports of the following commodities.

  1. Crude oil: -US$60.9 billion (Down -6.2% since 2009)
  2. Gold (unwrought): -$18.6 billion (Down -19.8%)
  3. Phone system devices including smartphones: -$13.7 billion (Up 172.5%)
  4. Coal, solid fuels made from coal: -$12.7 billion (Up 69%)
  5. Petroleum gases: -$9.4 billion (Up 134%)
  6. Palm oil: -$5.6 billion (Up 61%)
  7. Computers, optical readers: -$4.5 billion (Up 153.6%)
  8. Dried shelled vegetables: -$3.8 billion (Up 91.4%)
  9. Solar power diodes/semi-conductors: -$3.5 billion (Up 760.8%)
  10. Soya-bean oil: -$3 billion (Up 336.4%)

India’s red ink in global trade expanded at the fastest rate for the following products: solar power diodes and semi-conductors (up 760.8%), soya-bean oil (up 336.4%) and phone system devices including smartphones (up 172.5%).

Deficits for only two of India’s top trade products declined from 2009 to 2016, unwrought gold (down -19.8%) and crude oil (down -6.2%).

Country+

In 2016, India generated a surplus subtotal worth $65.7 billion with the following 10 trading partners.

  1. United States: US$21.6 billion (Up 590.9% since 2009)
  2. United Arab Emirates: $11.4 billion (Up 101.5%)
  3. Hong Kong: $6.1 billion (Up 226.7%)
  4. Bangladesh: $5 billion (Up 156.9%)
  5. United Kingdom: $4.7 billion (Up 90%)
  6. Nepal: $4.1 billion (Up 354.4%)
  7. Sri Lanka: $3.5 billion (Up 149.6%)
  8. Turkey: $3.3 billion(Up from a -$294.6 million deficit)
  9. Netherlands: $3.1 billion (Down -31.2%)
  10. Vietnam: $2.8 billion (Up 104.9%)

Indian trade surpluses with the United States (up 590.9%), Nepal (up 354.4%) and Hong Kong (up 226.7%) grew at the fastest pace. India also posted significant gains trading with Bangladesh (up 156.9%) and Sri Lanka (up 149.6%), while India reversed -$294.6 million in red ink in 2009 with a $3.3 billion surplus for 2016.

Netherlands was the only top trade partner with which India’s positive net exports declined, via a -31.2% surplus decrease from $4.5 billion during 2009.

Country-

India experienced a losing international trade relationship with 78 countries. The following 10 trade partners created a -$129.9 billion deficit subtotal in 2016 from exchanging exports and imports.

  1. China: -US$51.6 billion (Up 154.7% since 2009)
  2. Switzerland: -$13.8 billion (Up 44.9%)
  3. Saudi Arabia: -$13.4 billion (Up 26.2%)
  4. Indonesia: -$9.1 billion (Up 97%)
  5. Iraq: -$9 billion (Up 71%)
  6. South Korea: -$8.7 billion (Up 96.2%)
  7. Qatar: -$6.7 billion (Up 87.9%)
  8. Japan: -$6 billion (Up 72.2%)
  9. Iran: -$5.8 billion (Down -32.3%)
  10. Australia: -$5.8 billion (Down -45.6%)

Up 154.7%, India’s trade deficit with China grew the fastest expanding by 154.7% from 2009 to 2016. India’s negative net exports with Indonesia expanded by 97% followed by a 96.2% red ink increase trading with South Korea.

India shrank the size of its negative trade balances with two top partners, Australia (down -45.6%) and Iran (down -32.3%).




 

See also India’s Top 10 Major Export Companies, India’s Top 10 Imports, India’s Top Trading Partners, Highest Value Indian Export Products and India’s Top 10 Exports

Research Sources:
Trade Map, International Trade Centre. Accessed on March 9, 2017

Investopedia, Net Exports Definition. Accessed on March 9, 2017

The World Factbook, Field Listing: World, Central Intelligence Agency. Accessed on March 9, 2017

Wikipedia, Economy of India. Accessed on March 9, 2017