India’s imports from FTA partners rise faster than exports

Hyderabad: Merchandise imports from countries with which India has a free trade agreement (FTA) like the UAE, South Korea, and Australia rose almost 38 percent during the 2019-24 fiscal year to $187.92 billion, according to the thinktank Global Trade Research Initiative.

India’s exports to the FTA, however, grew just 14.48 percent to $122.72 billion in 2023-24 from $107.20 billion in 2018-19.

"The country’s imports growth highlights the significant and varied impact of free trade agreements on India’s global trade dynamics,” the Global Trade Research Initiative (GTRI) says.

In the case of India’s exports to the UAE, the rise was 18.25 percent to $35.63 billion in 2023-24 as against $30.13 billion in 2018-19, but imports zoomed 61.21 percent, from $29.79 billion in FY2019 to $48.02 billion in the last fiscal.

On the other hand, our exports to Australia more than doubled to $7.94 billion in 2023-24 from $3.52 billion in 2018-19, while imports from Australia grew 23.06 percent from $13.13 billion to $16.16 billion in the last fiscal.

Exports to the 10-nation Southeast Asian bloc ASEAN increased by about 10 percent to $41.21 billion in 2023-24 from $37.47 billion in FY-2019. Imports, however, surged by 34.3 percent from $59.32 billion to $79.67 billion.

India’s exports to South Korea rose by 36.38 percent during the last five fiscal years from $4.71 billion to $6.42 billion, whereas imports rose by 26.12 percent from $16.76 billion to $21.14 billion.

In the case of Japan, it was the other way around, with exports rising tepidly by 6.06 percent, from $4.86 billion in 2018-19 to $5.16 billion in 2023-24. Imports, however, jumped by 38.56 percent from $12.77 billion to $17.7 billion.

Overall, India ranked 17th globally in exports, with a 1.8 percent share in world trade. On the import front, the country is ranked 8th, holding a 2.8 percent share in global trade.