India’s FTA imports, including UAE, South Korea, and Australia, surged 38% (2019-24), per GTRI

India’s FTA Partner Trade Surges 38%: GTRI Report

India’s trade dynamics with its free trade agreement (FTA) partners, including the UAE, South Korea, and Australia, have undergone significant transformations, as revealed by insights from the Global Trade Research Initiative (GTRI). Over the span of fiscal years 2019-24, India witnessed a notable surge in imports from these FTA nations, registering a remarkable 38% growth to reach a substantial value of $187.92 billion. This surge underscores the evolving landscape of India’s trade relations and the profound impact of FTAs on its global commerce strategy.

Conversely, India’s exports to its FTA partners also demonstrated an upward trajectory, albeit at a comparatively modest rate. During the same period, exports surged by 14.48%, reaching $122.72 billion in 2023-24, compared to $107.20 billion in 2018-19. This balanced growth in both imports and exports signifies the multifaceted nature of India’s trade engagements and the strategic importance of fostering mutually beneficial relationships with its trading partners.

Delving deeper into the specifics, the data reveals intriguing trends in India’s trade dynamics with key FTA partners. For instance, exports to the UAE, a pivotal trading partner, witnessed a robust increase of 18.25% to $35.63 billion in 2023-24 from $30.13 billion in 2018-19. This surge in exports is complemented by a substantial rise in imports, which surged by an impressive 61.21% during the same period, reflecting the deepening economic ties between the two nations following the implementation of the FTA in May 2022.

Similarly, India’s trade relations with Australia witnessed a remarkable transformation, fueled by the interim trade pact that came into force in December 2022. Exports to Australia more than doubled, soaring to $7.94 billion in 2023-24 from $3.52 billion in 2018-19, indicating the growing market opportunities for Indian exporters in the Australian market. In parallel, imports from Australia also experienced notable growth, rising by 23.06% to $16.16 billion in the last fiscal year, underscoring the burgeoning bilateral trade ties between the two nations.

Furthermore, India’s engagement with other FTA partners, such as the ASEAN bloc, South Korea, and Japan, also exhibited noteworthy trends. The ASEAN region, a key trading bloc for India, witnessed a steady increase in exports, reflecting India’s efforts to capitalize on the vast market potential offered by its neighboring countries. Meanwhile, India’s trade relations with South Korea and Japan, characterized by comprehensive economic partnership agreements, witnessed significant growth in both exports and imports, highlighting the strategic significance of these trade alliances in enhancing India’s global competitiveness.

Overall, India’s trade performance on the global stage remains robust, with the nation ranking 17th in exports and 8th in imports, underscoring its pivotal role in global trade networks. Despite challenges posed by external factors, India’s trade resilience and strategic partnerships continue to drive its economic growth and position the country as a formidable player in the global marketplace.

Ajay Srivastava, co-founder of GTRI, brings invaluable expertise and insights to the discourse on India’s trade dynamics. With a distinguished career in the Indian Trade Service, his contributions to trade policy making, WTO negotiations, and FTA deliberations have been instrumental in shaping India’s trade agenda and fostering collaborative partnerships on the international stage.