India’s Bilateral Trade with Neighbouring Countries and Market Outlook
17 June 2024
India got a new regime and so
the challenges in bilateral trade with neighbouring countries will also
increase. Recently, leaders of Bangladesh, Sri Lanka, Nepal, Maldives,
Seychelles, Bhutan and Mauritius attended the swearing-in ceremony of the new
government. What is India’s trade with neighbouring nations? What will be the outlook
of bilateral trade relations with these countries? Let’s try to understand by
analysing crucial statistics.
1.
Bangladesh
India and Bangladesh have deep
historical ties rooted in India’s role in Bangladesh’s liberation. Today, they
share a robust trade relationship, which amounted to $26,061 million in 2023,
with India exporting salt, sulphur, earth stones, and cotton the most at
Chapter level. Whereas, Bangladesh exports apparel and clothing the most to
India. India-Bangladesh bilateral trade data gives you detailed market outlook.
|
India-Bangladesh
Trade Outlook |
|||||
|
India’s Imports from Bangladesh |
2023 |
2024 (Jan-Apr) |
India’s Exports to Bangladesh |
2023 |
2024 (Jan-Apr) |
|
Total
Imports |
1,866 |
516 |
Total
Exports |
24,195 |
4,371 |
|
HS Code 62 |
415 |
118 |
HS Code 25 |
12,971 |
66 |
|
HS
Code 61 |
231 |
56 |
HS Code
52 |
2,407 |
1,024 |
|
HS Code 53 |
217 |
68 |
HS Code 27 |
1,300 |
944 |
|
HS
Code 88 |
176 |
3 |
HS Code
23 |
825 |
228 |
|
HS Code 63 |
146 |
44 |
HS Code 87 |
706 |
216 |
|
HS
Code 42 |
100 |
21 |
HS Code
84 |
632 |
191 |
|
HS Code 64 |
77 |
18 |
HS Code 07 |
505 |
95 |
|
HS
Code 15 |
65 |
13 |
HS Code
29 |
407 |
135 |
|
HS Code 03 |
45 |
21 |
HS Code 17 |
388 |
57 |
|
HS
Code 39 |
38 |
13 |
HS Code
10 |
325 |
11 |
*****Value $ Million
*****Product Description of
Every HS Code is Given Below
2. Sri Lanka
The bilateral trade between
India and Sri Lanka was valued at $5,254 million in 2023. India largely exports
ships, boats & floating structures and sugar to Sri Lanka, while Sri Lanka
exports edible fruits and nuts and aircraft, spacecraft, and parts. Future
discussions between India and Sri Lanka are expected to focus on enhancing
maritime security cooperation, settle maritime disputes, and strengthen
economic cooperation.
|
India-Sri
Lanka Trade Outlook |
|||||
|
India’s Imports from Sri Lanka |
2023 |
2024 (Jan-Apr) |
India’s Exports to Sri Lanka |
2023 |
2024 (Jan-Apr) |
|
Total
Imports |
1,299 |
330 |
Total
Exports |
3,955 |
1,556 |
|
HS Code 08 |
446 |
26 |
HS Code 89 |
479 |
93 |
|
HS
Code 88 |
122 |
92 |
HS Code
17 |
385 |
60 |
|
HS Code 09 |
118 |
15 |
HS Code 30 |
302 |
86 |
|
HS
Code 23 |
106 |
36 |
HS Code
52 |
279 |
104 |
|
HS Code 85 |
39 |
13 |
HS Code 27 |
254 |
256 |
|
HS
Code 22 |
37 |
15 |
HS Code
60 |
233 |
82 |
|
HS Code 62 |
32 |
15 |
HS Code 84 |
172 |
96 |
|
HS
Code 89 |
31 |
4 |
HS Code
48 |
142 |
41 |
|
HS Code 94 |
31 |
9 |
HS Code 09 |
133 |
40 |
|
HS
Code 40 |
29 |
7 |
HS Code
07 |
131 |
33 |
******Value $ Million
*****Product Description of
Every HS Code is Given Below
3. Nepal
India and Nepal share an
open-border relationship, reflecting their deep historical and cultural ties.
In 2023, India-Nepal bilateral trade amounted to $8,056 million, in which
India’s exports to Nepal were more than that of imports. India exported mineral
fuels and oils and iron and steel the most to Nepal, and imported oilseeds and
edible fruits and nuts from Nepal in 2023. The two countries also share deep
cultural and religious ties, with a thriving tourism industry. Energy and
water-sharing disputes have in the past been a sticking point.
|
India-Nepal
Trade Outlook |
|||||
|
India’s Imports from Nepal |
2023 |
2024 (Jan-Apr) |
India’s Exports to Nepal |
2023 |
2024 (Jan-Apr) |
|
Total
Imports |
67 |
274 |
Total
Exports |
7,989 |
2,399 |
|
HS Code 09 |
12 |
28 |
HS Code 27 |
2,421 |
812 |
|
HS
Code 15 |
8 |
30 |
HS Code
72 |
927 |
191 |
|
HS Code 72 |
8 |
33 |
HS Code 87 |
459 |
104 |
|
HS
Code 55 |
6 |
25 |
HS Code
84 |
418 |
160 |
|
HS Code 53 |
4 |
11 |
HS Code 10 |
401 |
106 |
|
HS
Code 22 |
4 |
23 |
HS Code
85 |
366 |
117 |
|
HS Code 39 |
3 |
11 |
HS Code 39 |
265 |
95 |
|
HS
Code 44 |
3 |
22 |
HS Code
30 |
247 |
84 |
|
HS Code 23 |
3 |
8 |
HS Code 23 |
166 |
52 |
|
HS
Code 14 |
2 |
9 |
HS Code
73 |
123 |
36 |
******Value $ Million
*****Product Description of
Every HS Code is Given Below
4. Maldives
India and the Maldives have maintained
close ties over the years, but recently relations between them were deteriorated
due to row over India’s Lakshadweep Islands. Now it looks India-Maldives
relationships are expected to improve after the recent Maldives President visit
to India. Trade data shows India’s exports to Maldives valued at $651,385
thousand, and imports from Maldives valued at $70,304 thousand in 2023. Apart
from improving strained ties, upcoming discussions will likely be centred
around issues such as climate change and sustainable development.
|
India-Maldives
Trade Outlook |
|||||
|
India’s Imports from Maldives |
2023 |
2024 (Jan-Apr) |
India’s Exports to Maldives |
2023 |
2024 (Jan-Apr) |
|
Total
Imports |
70,304 |
3,934 |
Total
Exports |
651,385 |
510,554 |
|
HS Code 88 |
56,941 |
- |
HS Code 27 |
90,637 |
4,963 |
|
HS
Code 72 |
6,536 |
1,779 |
HS Code
84 |
70,095 |
19,651 |
|
HS Code 74 |
4,170 |
1,488 |
HS Code 72 |
51,017 |
15,365 |
|
HS
Code 76 |
1,335 |
273 |
HS Code
25 |
45,909 |
18,352 |
|
HS Code 85 |
975 |
228 |
HS Code 30 |
34,548 |
11,082 |
|
HS
Code 27 |
221 |
68 |
HS Code
73 |
33,941 |
12,067 |
|
HS Code 84 |
57 |
- |
HS Code 39 |
32,032 |
8,825 |
|
HS
Code 47 |
29 |
11 |
HS Code
85 |
30,871 |
14,252 |
|
HS Code 96 |
7 |
000.8 |
HS Code 07 |
19,911 |
9,975 |
|
HS
Code 90 |
4 |
- |
HS Code
10 |
17,992 |
9,417 |
*****Value $ Thousand
*****Product Description of
Every HS Code is Given Below
5.
Seychelles
India and Seychelles share a
strategic relationship, particularly in maritime security and environmental
cooperation. Located north of Madagascar, Seychelles is among the most
strategically important archipelagos in the Indian Ocean. Trade between them
valued at $92,512 thousand in 2023. India’s majorly exports vehicles other than
railway or tramway to Seychelles and imports iron and steel from Seychelles.
|
India-Seychelles
Trade Outlook |
|||||
|
India’s Imports from Seychelles |
2023 |
2024 (Jan-Apr) |
India’s Exports to Seychelles |
2023 |
2024 (Jan-Apr) |
|
Total
Imports |
4,090 |
840 |
Total
Exports |
88,422 |
29,925 |
|
HS Code 72 |
1,764 |
417 |
HS Code 87 |
22,170 |
9,941 |
|
HS
Code 74 |
926 |
135 |
HS Code
73 |
8,648 |
1,665 |
|
HS Code 76 |
485 |
190 |
HS Code 10 |
7,349 |
3,323 |
|
HS
Code 84 |
364 |
2 |
HS Code
30 |
5,280 |
2,106 |
|
HS Code 85 |
329 |
33 |
HS Code 84 |
4,906 |
953 |
|
HS
Code 94 |
102 |
3 |
HS Code
85 |
3,918 |
611 |
|
HS Code 39 |
27 |
3 |
HS Code 39 |
3,284 |
894 |
|
HS
Code 40 |
27 |
1 |
HS Code
89 |
2,630 |
- |
|
HS Code 69 |
18 |
7 |
HS Code 25 |
2,475 |
523 |
|
HS
Code 44 |
17 |
9 |
HS Code
69 |
1,961 |
382 |
*****Value $ Thousand
*****Product Description of
Every HS Code is Given Below
6.
Bhutan
India and Bhutan are what one
can call, all weather friends with significant economic and cultural exchanges.
In 2023, the bilateral trade between India and Bhutan valued at $14,70,361
thousand. India being a major partner in Bhutan’s hydroelectric power sector.
Future discussions will likely focus on expanding economic cooperation through
new trade agreements.
|
India-Bhutan
Trade Outlook |
|||||
|
India’s Imports from Bhutan |
2023 |
2024 (Jan-Apr) |
India’s Exports to Bhutan |
2023 |
2024 (Jan-Apr) |
|
Total
Imports |
424,979 |
103,316 |
Total
Exports |
1,045,382 |
350,377 |
|
HS Code 72 |
207,099 |
60,873 |
HS Code 27 |
214,401 |
82,991 |
|
HS
Code 88 |
102,357 |
40,326 |
HS Code
85 |
95,820 |
32,167 |
|
HS Code 25 |
87,064 |
32,456 |
HS Code 72 |
84,849 |
18,264 |
|
HS
Code 22 |
11,071 |
4,841 |
HS Code
84 |
81,062 |
31,539 |
|
HS Code 28 |
8,139 |
2,853 |
HS Code 39 |
78,818 |
13,449 |
|
HS
Code 44 |
3,049 |
976 |
HS Code
44 |
44,740 |
14,981 |
|
HS Code 09 |
2,103 |
372 |
HS Code 73 |
36,696 |
12,469 |
|
HS
Code 19 |
1,107 |
232 |
HS Code
10 |
29,758 |
10,611 |
|
HS Code 20 |
928 |
313 |
HS Code 15 |
24,343 |
7,365 |
|
HS
Code 07 |
581 |
9 |
HS Code
04 |
23,246 |
7,992 |
*****Value $ Thousand
*****Product Description of
Every HS Code is Given Below
7.
Mauritius
India and Mauritius enjoy
close relations, underpinned by strong cultural and economic ties. Bilateral
trade of India and Mauritius in 2023 was $7,02,156 thousand with industries – mineral
fuels & oils, and iron and steel. Future talks will focus on enhancing
strategic partnership in sectors like digital technology and the blue economy
(economy activity associated with the sea).
|
India-Mauritius
Trade Outlook |
|||||
|
India’s Imports from Mauritius |
2023 |
2024 (Jan-Apr) |
India’s Exports to Mauritius |
2023 |
2024 (Jan-Apr) |
|
Total
Imports |
55,504 |
14,749 |
Total
Exports |
646,652 |
234,597 |
|
HS Code 72 |
23,168 |
5,462 |
HS Code 27 |
130,067 |
68,949 |
|
HS
Code 90 |
14,398 |
3,110 |
HS Code
30 |
71,928 |
19,452 |
|
HS Code 76 |
5,318 |
2,193 |
HS Code 87 |
61,438 |
21,160 |
|
HS
Code 74 |
3,225 |
743 |
HS Code
10 |
52,644 |
17,732 |
|
HS Code 85 |
2,798 |
501 |
HS Code 62 |
35,320 |
12,500 |
|
HS
Code 44 |
1,797 |
1,229 |
HS Code
52 |
35,025 |
14,928 |
|
HS Code 47 |
1,233 |
506 |
HS Code 85 |
33,632 |
6,994 |
|
HS
Code 12 |
653 |
247 |
HS Code
84 |
29,482 |
8,843 |
|
HS Code 26 |
516 |
45 |
HS Code 03 |
16,853 |
4,746 |
|
HS
Code 84 |
501 |
14 |
HS Code
02 |
12,340 |
4,140 |
*****Value $ Thousand
*****Product Description of
Every HS Code is Given Below
Old Problems
India’s new regime must keep a
close watch on two ongoing wars – Russia-Ukraine and Israel-Hamas that will
impact country’s foreign policy, though India continues to benefit from a
Western gang-up against Russia in terms of oil import and being a friend who
can talk to both parties and most players around it.
The Israel-Hamas war will
adversely impact the India-Middle East-Europe Economic Corridor (IMEEC). This
region is crucial for India’s energy requirements, investment needs, and
connectivity plans, besides being home to the largest number of Non-Resident
Indians (NRIs) anywhere in the world.
China’s Behaviour
China’s geopolitical ambition
in India’s backyard is growing with New Delhi’s struggle to keep some of its
neighbours aligned with its core interests. The political leadership of India
and Chins will most likely to make another effort to resolve the crisis. On one
hand, it is unlikely that China will restore the status quo ante at the border,
thus allowing both countries to channel their energies to focus on other
issues. On the other hand, India is still majorly dependent on China for the
imports of various commodities.
That means the Indian economy
needs to grow at a higher pace, and India should speed up policy changes that
will help New Delhi play a larger role in an emerging world order.
In short, India’s foreign
policy priorities would be under new regime:
Indo-Pacific partnership will continue to flourish.
India-US partnership will certainly witness a new phase of the relationship. India needs higher foreign investments and technology from the United States as India’s ambition is to become self-reliant in the semiconductor industry.
India will continue with new FTAs and would like to conclude the one with the United Kingdom, the European Union, Bangladesh, among others.
Regional integration such as the BIMSTEC is going to observe a higher pace. The sixth BIMSTEC Summit is going to take place in Bangkok in September 2024.
The India-Middle East-Europe Economic Corridor (IMEC) is a variable alternative to avoid the Bab EI-Mandab strait, which is a major chokepoint for maritime traffic.
List Of HS Codes Mentioned In
Above Tables With Their Product Descriptions
|
HS Code |
Product Description |
|
02 |
Meat and edible meat offal |
|
03 |
Fish and crustaceans, molluscs
and other aquatic invertebrates |
|
04 |
Dairy produce; birds´ eggs; natural honey; edible products of animal
origin, not elsewhere specified or included |
|
07 |
Edible vegetables and certain
roots and tubers |
|
08 |
Edible fruit and nuts; peel of citrus fruit or melons |
|
09 |
Coffee, tea, maté and spices |
|
10 |
Cereals |
|
12 |
Oil seeds and oleaginous
fruits; miscellaneous grains, seeds and fruit; industrial or medicinal
plants; straw and fodder |
|
14 |
Vegetable plaiting materials; vegetable products not elsewhere
specified or included |
|
15 |
Animal or vegetable fats and
oils and their cleavage products; prepared edible fats; animal or vegetable
waxes |
|
17 |
Sugars and sugar confectionery |
|
19 |
Preparations of cereals,
flour, starch or milk; bakers' wares |
|
20 |
Preparations of vegetables, fruit, nuts or other parts of plants |
|
22 |
Beverages, spirits and vinegar |
|
23 |
Residues and waste from the food industries; prepared animal feed |
|
25 |
Salt; sulphur; earths and
stone; plastering materials, lime and cement |
|
26 |
Ores, slag and ash |
|
27 |
Mineral fuels, mineral oils
and products of their distillation; bituminous substances; mineral waxes |
|
28 |
Inorganic chemicals; organic or inorganic compounds of precious
metals, of rare-earth metals, of radioactive elements or of isotopes |
|
29 |
Organic chemicals |
|
30 |
Pharmaceutical products |
|
39 |
Plastics and articles thereof |
|
40 |
Rubber and articles thereof |
|
42 |
Articles of leather; saddlery
and harness; travel goods, handbags and similar containers; articles of
animal gut (other than silkworm gut) |
|
44 |
Wood and articles of wood; wood charcoal |
|
47 |
Pulp of wood or of other
fibrous cellulosic material; recovered (waste and scrap) paper or paperboard |
|
48 |
Paper and paperboard; articles of paper pulp, of paper or of
paperboard |
|
52 |
Cotton |
|
53 |
Other vegetable textile fibers; paper yarn and woven fabrics of paper
yarn |
|
55 |
Man-made staple fibers |
|
60 |
Knitted or crocheted fabrics |
|
61 |
Articles of apparel and
clothing accessories, knitted or crocheted |
|
62 |
Articles of apparel and clothing accessories, not knitted or crocheted |
|
63 |
Other made-up textile
articles; needlecraft sets; worn clothing and worn textile articles; rags |
|
64 |
Footwear, gaiters and the like; parts of such articles |
|
69 |
Ceramic products |
|
72 |
Iron and steel |
|
73 |
Articles of iron and steel |
|
74 |
Copper and articles thereof |
|
76 |
Aluminum and articles thereof |
|
84 |
Nuclear reactors, boilers, machinery and mechanical appliances; parts
thereof |
|
85 |
Electrical machinery and
equipment and parts thereof; sound recorders and reproducers, television
image and sound recorders and reproducers, and parts and accessories of such
articles |
|
87 |
Vehicles other than railway or tramway rolling stock, and parts and
accessories thereof |
|
88 |
Aircraft, spacecraft, and
parts thereof |
|
89 |
Ships, boats and floating structures |
|
90 |
Optical, photographic,
cinematographic, measuring, checking, precision, medical or surgical
instruments and apparatus; parts and accessories thereof |
|
94 |
Furniture; bedding, mattresses, mattress supports, cushions and
similar stuffed furnishings; lamps and lighting fittings, not elsewhere
specified or included; illuminated signs, illuminated nameplates and the
like; prefabricated buildings |
|
96 |
Miscellaneous manufactured
articles |
