India’s imports from FTA partners up 38% in 5 yrs
India’s imports of goods from countries with which it has a free trade agreement like the UAE, South Korea, and Australia grew about 38% during 2019-24 fiscal years to $187.92 billion, according to think tank GTRI.
On the other hand, the country’s exports to the FTA (free trade agreement) partners rose 14.48% to $122.72 billion in 2023-24 from $107.20 billion in 2018-19. “From FY’2019 to FY’2024, India’s imports increased by 37.97%, from $136.20 billion to $187.92 billion. This growth highlights the significant and varied impact of free trade agreements on India’s global trade dynamics,” the Global Trade Research Initiative data showed.
According to the data, India’s exports to the UAE increased by 18.25% to $35.63 billion in 2023-24 as against $30.13 billion in 2018-19, while imports surged 61.21%, from $29.79 billion in FY2019 to $48.02 billion in the last fiscal.
The FTA between India and the UAE came into effect in May 2022.
Similarly, the country’s exports to Australia, with which the interim trade pact came into force in December 2022, more than doubled to $7.94 billion in 2023-24 from $3.52 billion in 2018-19.
Imports from Australia grew 23.06% from $13.13 billion to $16.16 billion in the last fiscal.
Exports to 10-nation southeast Asian bloc ASEAN increased by about 10% to $41.21 billion in the last fiscal from $37.47 billion in FY-2019. Imports jumped by 34.3% from $59.32 billion to $79.67 billion.
The data showed that India’s outbound shipments to South Korea rose by 36.38% during the last five fiscal years from $4.71 billion to $6.42 billion, and imports increased by 26.12% from $16.76 billion to $21.14 billion. India and South Korea’s comprehensive economic partnership agreement came into force in 2011.
Exports to Japan showed a modest increase of 6.06%, from $4.86 billion in 2018-19 to $5.16 billion in 2023-24, while imports rose by 38.56% from $12.77 billion to $17.70 billion. India-Japan FTA was implemented in 2011.
Overall, India ranked 17th globally in exports, with a 1.8% share in world trade. On the import front, the country is ranked 8th, holding a 2.8% share in global trade.
India’s merchandise exports in 2023-24 fell 3.11% to $437.1 billion, while imports declined by 5.4% to $677.2 billion in the last fiscal.
Ajay Srivastava is the co-founder of GTRI. He took VRS from Government of India in March 2022. He was an Indian Trade Service officer with experience in trade policy making, WTO and FTA negotiations.