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India’s Trade Performance
Context:
According to data from the Commerce Ministry, the Netherlands has become India’s third-largest export destination in 2023-24, following the U.S. and UAE, despite a more than 3% decline in the country’s merchandise exports.
More on news:
- Key commodities driving exports include petroleum products ($14.29 billion), electrical goods, chemicals, and pharmaceuticals in the last fiscal year.
- India’s trade surplus with the Netherlands jumped to $17.4 billion in the last fiscal from $13 billion in 2022-23.
- The Netherlands has surpassed major destinations like the U.K., Hong Kong, Bangladesh, and Germany in terms of trade importance.
- India’s exports to the Netherlands rose by about 3.5% to $22.36 billion in 2023-24 compared to $21.61 billion in 2022-23.
- Outbound shipments to the Netherlands stood at $12.55 billion in 2021-22 and $6.5 billion in 2020-21, showing consistent healthy growth since 2000-01.
- In 2021-22, the Netherlands ranked as the fifth-largest destination for Indian exports, up from ninth in 2020-21.
India-Netherlands Trade Relations Insights:
- The Netherlands, recognized as a European hub, boasts efficient ports and connectivity with the EU via roads, railways, and waterways.
- Bilateral trade slightly decreased to $27.34 billion in 2023-24 compared to $27.58 billion in 2022-23.
- The Netherlands ranks among India’s top European trading partners.
- Significant investments from the Netherlands in India amounted to approximately $5 billion in foreign direct investment in the last fiscal year, up from $2.6 billion in 2022-23.
- Over 200 Dutch companies, including Philips, Akzo Nobel, DSM, KLM, and Rabobank, operate in India.
- Similarly, more than 200 Indian companies, including major IT firms like TCS, HCL, Wipro, Infosys, Tech Mahindra, Sun Pharmaceuticals, and Tata Steel, have a presence in the Netherlands.
India’s trade performance in FY 2023-24: India has recorded a trade deficit, the with nine of its top 10 trading partners.
- The surplus is also there with the USA, U.K., Belgium, Italy, France and Bangladesh.
- The trade gap with the UAE, Saudi Arabia, Russia, Indonesia, and Iraq narrowed.
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- Total goods imports by India in 2023–24 decrease by 5.66 percent
- FTA Partnerships: Imports from India’s key free trade agreement (FTA) partners saw robust growth of nearly 38%.
- Global Ranking: India has advanced from 19th to 17th place among the world’s merchandise exporters, with its share increasing from.
- Key Export Destinations: These include the US, UAE, Netherlands, China, UK, Saudi Arabia, Singapore, Bangladesh, Germany, and Italy.
- Non-Petroleum and Non-Gems/Jewellery Exports: Increased by 1.45%.
- Key Export Growth Sectors: Electronic goods, drugs & pharmaceuticals, engineering goods, iron ore, cotton yarn, fabrics, made-ups, handloom products, ceramic products, and glassware.
- China Surpasses US as India’s Top Trading Partner:
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- Indian exports to China grew by 8.7%,, driven by various sectors including iron ore, cotton yarn/fabrics, handloom products, spices, fruits, and vegetables.
- Imports from China rose moderately by 3.24%,, driven by high-tech gear and industrial inputs.
- Indian exports to the US slightly decreased by 1.32%, while imports declined by approximately 20% FY24.