India’s trade dynamics saw notable shifts in the calendar year 2023, with imports from China experiencing a 3 per cent decline, according to the Commerce and Industry Ministry. Conversely, exports to both China and the European Union (EU) saw positive growth, rising by 7.1 per cent and 2.1 per cent respectively during the same period.
These revelations come in the wake of a report by the United Nations Conference on Trade and Development (UNCTAD), which highlighted India’s increased trade dependence on China and the EU, while indicating a reduction in reliance on Saudi Arabia. The report also pointed out a decrease in trade interdependence between China and the United States.
Responding to the UNCTAD findings, the Commerce and Industry Ministry stressed that while the increased trade dependence might carry negative connotations, detailed analysis revealed favourable trade dynamics for India in the specified period.
In terms of imports from the EU, India experienced a notable surge of 9.7 per cent in 2023. These imports primarily comprised capital goods and intermediate goods/raw materials, crucial for various industries within the country.
Of particular significance was the significant increase in imports of parts related to telecommunications equipment from the EU. These imports serve as essential inputs for the manufacturing of mobile and smartphones, reflecting India’s growing presence in the global technology market.
Meanwhile, India’s export of smartphones experienced remarkable growth, growing by 98.42 per cent in 2023 compared to the previous year, reaching a value of USD 14.27 billion.
