5 countries with whom India has largest trade gaps

India’s trade gap with the world widened by $69 billion during the June quarter as spike in commodity prices and a weak rupee ballooned the country’s import bill. Overall, India imported goods worth $190 billion during April-June quarter, while total exports stood at $121 billion. India’s trade deficit has increased $14.5 billion QoQ and $37.5 billion on YoY basis. Also, the data available with CMIE Economic Outlook showed that India witnesses a trade deficit with at least 34 countries during the quarter gone by. Here is a list of countries with whom India reported the maximum trade gap during the June quarter.

China | Import: $24.3 billion | Export: $4.7 billion | Trade Gap: $19.7 billion

India imported electronic goods ($7.8 billion) the most from China during April-June quarter. It was followed by engineering goods ($6.5 billion), chemicals and related products ($5.5 billion) and non-electrical machinery ($2.4 billion). On the other hand, it exported agricultural products ($1.2 billion), chemicals and related products ($697 million) and engineering goods ($623 million) to China.

Iraq: $11.3 billion

India imported crude oil ($11.4 billion) and petroleum products ($0.4 billion) from Iraq during April-June quarter. While India exported agricultural products ($312 million), chemicals and other manufactured goods ($200 million) to Iraq.

Saudi Arabia: $9.3 billion

India imported crude oil worth $8.3 billion from Saudi Arabia during April-June quarter. It was followed by petroleum products ($1.5 billion) and chemicals and related products ($1.3 billion). India exported agricultural and allied products ($575 million), chemicals and related goods ($419 million) and engineering goods ($626 million) to the Middle Eastern country.

Russia: $8.8 billion

Russia has become one of India’s major crude suppliers after its conflict with Ukraine intensified; this conflict has disrupted the global commodity and energy supply chain. Due to the sanctions on Russia by the West, Moscow offered discounted rates for crude supply. India imported crude and petroleum products worth $7 billion from Russia during April-June quarter. It was followed by Chemicals and Fertilizers ($1.2 billion) and Minerals and Ores ($1 billion). India exported chemicals and other manufactured goods ($316 million) and agricultural products ($117 million).

UAE: $6.1 Billion

Crude and petroleum products ($ 8.6 billion) formed majority of imports again from UAE during April-June quarter. Crude import is followed by gold and precious stones ($3.3 billion) and engineering goods ($1.1 billion). On the other hand, thanks to the domestic refineries, India exported petroleum products worth ($2.6 billion), engineering goods ($1.2 billion), agricultural products ($792 million), electronic goods ($659 million) and chemicals products ($484 million) to the UAE during the June quarter.