From the time India opened its markets in 1990-91, there has been an exponential growth in the country’s foreign trade statistics – import have increased more than 19 times and exports more than 16 times. In FY 2020-21, India’s total imports and exports figure stands at US$394.43 billion and US$291.80 billion, respectively. India is one of the largest exporters of textiles, clothing, leather goods, gems & jewellery, and spices in the world. The country is also a major importer of machinery, industrial raw materials and chemicals. With the growing demand for export and import business in India, it is no wonder that the import and export industry is among the largest industries in the country.
The import and export business helps to balance the trade deficit of the country. The import of raw materials and capital goods helps in meeting the demands of the growing industrial sector, while the export of finished products and services helps to reduce the trade deficit.
India in Exports
India is a leading exporter of refined petroleum to countries in the Middle East as well as Europe. Around $12B worth of products are packed, wrapped and sent overseas annually.
Refined petroleum is the largest export in India, totalling $53.9B annually. While this is an impressive trade achievement, there has been a re-calibration of interests to favour more traditional agro-products such as rice and wheat, which at $57.4B is now worth more than refined petroleum on an annual basis. Exports of agricultural products ($15B worth) account for 25% of its total exports worldwide, which is no doubt a great advantage for India’s economy given how strategically important these sectors are for the country’s food supply chain. Other notable export items include jewellery (accounting for $11.8B) and cars (for over $5.7B).
Top Export Destinations
India in Imports
India imports a lot of oil, gold, diamonds and petroleum gas. It adds up to almost $200 billion which is a significant portion of the country’s gross revenues. India’s main source of oil comes from Saudi Arabia at 14% while Iraq and Iran contribute 13% each. The go-to destination for imported gold and diamonds is neighbouring countries like Singapore and the UAE.
Top Import Destinations
India imports mostly mineral fuels (27 percent), pearls, precious and semi-precious stones and jewellery (14 percent), electrical machinery and equipment (10 percent), organic chemicals (4 percent) and nuclear reactors, boilers, machinery and mechanical appliances (8 percent). Its main import partners are China (16 percent), the United States, United Arab Emirates, Saudi Arabia and Switzerland. China is India’s largest export partner, sending in $52.5 billion worth of products that include machinery, nuclear reactors, organic chemicals and mineral fuels. Saudi Arabia is India’s second largest international business partner; their exports are valued at $30 billion with the principal product being crude petroleum. Switzerland ships products valued at $21.3 billion to India including precious stones, gold and precious metals; electrical machinery; aircraft and pharmaceuticals among other export goods from the US to India at a value of $18.2 billion.
Summary:
Not only is the import and export industry a large and international market, but it’s also a major contributor to the world economy. The industry accounts for billions of dollars in trade each year and employs millions of people. With all that money being moved around, it’s important for businesses to know the ins and outs of the industry.
We hope this blog has been helpful in understanding Import and Export in India and can help you to be a part of this flourishing industry in the country. Well, If you are planning to enter the import and export business or looking for door-to-door service for importing from China to India. We provide a one stop solution for all your importing needs. Just contact us and we will help you.). At Sumark Global we made import easy and simple.