The largest portion of India's imports originated from China, representing more than 15 percent of the total imports in the financial year 2022, with the United Arab Emirates following at over seven percent. Conversely, during the same period, India's primary exports were directed towards the United States.
India’s import mix
India's imports encompass a wide range of goods, with some key commodities dominating the landscape. Among these critical imports are crude oil, gold, and petroleum products. Crude oil, constituting approximately 20 percent of total imports, is critical due to the nation’s reliance on energy sources. In addition, India, as a major textile producer, has witnessed a significant rise in textile imports over the years to meet the diverse consumer and industrial demands.
Trade balance
In the recent past, the country experienced a notable change in its trade balance-to-GDP ratio. This ratio, which reflects the relationship between the country's trade activities and the size of its economy, saw a significant decrease of 8.5 percent in fiscal year 2023. In other words, the country was importing more goods and services than it was exporting during the period.
