Mainland China, Switzerland and Iraq took the top three spots for trade partners causing India its highest negative balances exchanging exports and imports.
India’s overall trade deficit for all products equaled -US$175.6 billion in 2021, up by 23.8% from -$141.8 billion for 2014.
From 2020 to 2021, the -$175.6 billion in red ink during 2021 represents an 89.8% expansion from the -$92.5 billion deficit that India incurred in 2020.
To put India’s trade deficit metric into perspective, the country’s total external debt encompassing both public and private red ink equaled -$2.254 trillion calculated as of December 2020. India’s external debt is the equivalent of roughly 18,000 times its negative international trade balance from buying and selling exported and imported goods on global markets.
India’s Top Trade Surpluses by Product
The following 10 leading products generated a surplus subtotal of $108.9 billion for India in its global trade during 2021. Metrics listed below highlight India’s strongest competitive advantages at the product level versus its worldwide trading partners.
- Processed petroleum oils: US$44.3 billion (Down -21.8% since 2014)
- Medication mixes in dosage: $15.4 billion (Up 62.6%)
- Jewelry: $10 billion (Down -18.8%)
- Rice: $9.6 billion (Up 21.7%)
- Aluminum (unwrought): $6.4 billion (Up 1,010%)
- Crustaceans (including lobsters): $5.2 billion (Up 36.2%)
- Cars: $5.17 billion (Down -7.3%)
- Yarn (85%+ cotton): $4.7 billion (Up 15.5%)
- Hot-rolled iron or non-alloy steel products: $4.4 billion (Up 1,973%)
- Iron ores, concentrates: $3.8 billion (Up 1,824%)
The leading increases in India’s product-level surpluses from 2014 to 2021 were for hot-rolled iron or non-alloy steel products (up 1,973%) and iron ores or concentrates (up 1,824%).
The severest surplus declines year over year were -21.8% for processed petroleum oils and -18.8% for jewelry that India bought and sold on international markets.
India’s Top Trade Deficits by Product
The 10 major products below accumulated a deficit subtotal of -$260 billion for India in international trade during 2021. India has demonstrated the severest competitive disadvantages in the exports versus imports for the following commodities.
- Crude oil: -US$106.4 billion (Down -21.7% since 2014)
- Gold (unwrought): -$55.8 billion (Up 95%)
- Coal, solid fuels made from coal: -$25.6 billion (Up 57.1%)
- Petroleum gases: -$23.6 billion (Up 36.1%)
- Integrated circuits/microassemblies: -$12 billion (Up 730.5%)
- Computers, optical readers: -$10.7 billion (Up 146.9%)
- Palm oil: -$9.6 billion (Up 45.8%)
- Phone devices including smartphones: -$6.8 billion (Down -43.8%)
- Solar power diodes/semi-conductors: -$4.8 billion (Up 354.9%)
- Soya-bean oil: -$4.7 billion (Up 138.4%)
From 2014 to 2021, India’s red ink in global trade expanded at triple-digit percentages for integrated circuits and microassemblies (up 730.5%), solar power diodes or semi-conductors (up 354.9%), computers including optical readers (up 146.9%) then soya-bean oil (up 138.4%).
India’s severest declining deficits year over year were for phone devices including smartphones (down -43.8%) and crude oil (down -21.7%).
India’s Biggest Trade Surpluses by Country
In 2021, India generated a surplus subtotal worth $76.9 billion at the expense of the following 10 trading partners.
- United States: US$30.1 billion (Up 35.4% since 2014)
- Bangladesh: $12.3 billion (Up 114.9%)
- Nepal: $7.9 billion (Up 116.7%)
- Netherlands: $5.9 billion (Up 49.1%)
- Turkey: $5.3 billion (Up 24.5%)
- Sri Lanka: $3.8 billion (Down -34.6%)
- United Kingdom: $3.6 billion (Down -25.5%)
- Italy: $2.9 billion (Up 159.6%)
- Togo: $2.6 billion (Up 459.3%)
- Spain: $2.4 billion (Up 71.2%)
India’s trade surpluses with Togo (up 459.3%), Italy (up 159.6%), Nepal (up 116.7%) and Bangladesh (up 114.9%) grew at the fastest pace from 2014 to 2021.
Two of India’s top deficit creators realized shrinking trade deficits over the 7-year period, namely Sri Lanka (down -34.6%) and the United Kingdom (down -25.5%).
India’s Worst Trade Deficits by Country
India experienced a losing international trade relationship with almost 80 countries (or territories or islands). The following 10 trade partners created a -$199.3 billion deficit subtotal in 2021 from exchanging exports and imports.
- China: -US$64.5 billion (Up 44% since 2014)
- Switzerland: -$28.2 billion (Up 41%)
- Iraq: -$24.5 billion (Up 60.5%)
- Saudi Arabia: -$19.4 billion (Down -1%)
- United Arab Emirates: -$17.6 billion (Reversing a $5.6 billion surplus)
- South Korea: -$10 billion (Up 15.4%)
- Qatar: -$9.8 billion (Down -35.8%)
- Indonesia: -$8.6 billion (Down -19.6%)
- Japan: -$8.33 billion (Up 98.1%)
- Kuwait: -$8.25 billion (Down -40.4%)
India’s trade deficits expanded by double-digit percentages from 2014 to 2021 exchanging exports and imports with Japan (up 98.1%), Iraq (up 60.5%), mainland China (up 44%), Switzerland (up 41%) and South Korea (up 15.4%).
India whittled down the size of its negative trade balances over the 7-year period the most with the United Arab Emirates via a -412.9% reduction.
See also India’s Top 10 Major Export Companies, India’s Top 10 Imports, India’s Top Trading Partners and India’s Top 10 Exports
Research Sources:
Central Intelligence Agency, The World Factbook Country Profiles. Accessed on May 14, 2022
External Debt (for specified countries), CEIC Data. Accessed on May 14, 2022
International Trade Centre, Trade Map. Accessed on May 14, 2022
Investopedia, Net Exports Definition. Accessed on May 14, 2022
Wikipedia, Economy of India. Accessed on May 14, 2022