When you think about countries trading goods and services—like phones, clothes, or even oil—one question might pop up: Who does India trade with the most? India, a fast-growing economy with over a billion people, relies on international trade to fuel its industries, create jobs, and bring in everyday items. But which country tops the list as India’s biggest trade partner? Let’s break it down in simple terms.
What Does “Trade Partner” Mean?
A trade partner is a country that India buys stuff from (imports) or sells stuff to (exports). Think of it like a giant marketplace: India sends things like medicines, jewelry, or rice to other countries, and in return, it gets things like oil, electronics, or machinery. The “largest trade partner” is the country with the highest total value of these exchanges—imports plus exports—in a given year.
The Top Spot: China or the U.S.?
As of right now, in March 2025, the answer isn’t set in stone because trade numbers shift year to year. But let’s look at the recent past to get a clear picture. For the financial year 2023-24 (April 2023 to March 2024), China edged out as India’s largest trade partner, with a total trade value of $118.4 billion. The United States was a close second at $118.3 billion, according to data from the Global Trade Research Initiative (GTRI), an economic think tank. That’s a razor-thin difference—less than $100 million!
Before that, the U.S. held the top spot in 2021-22 and 2022-23, while China led from 2013-14 to 2017-18 and again in 2020-21. So, it’s like a seesaw between these two giants, with the UAE (United Arab Emirates) also popping up as a big player in earlier years.
Why China?
China’s lead in 2023-24 came mostly from imports. India bought $101.7 billion worth of goods from China—think smartphones, laptop parts, and electric vehicle batteries. Meanwhile, India sold $16.67 billion worth of goods to China, like spices, cotton, and iron ore. That’s a big gap, meaning India imports way more from China than it exports, creating what’s called a “trade deficit” of about $85 billion. Simply put, India spends more on Chinese goods than it earns from selling to China.
Why so much from China? It’s because China makes a lot of the tech and machinery India needs at prices that are hard to beat. For example, 44% of India’s telecom and smartphone parts and 77% of its laptop imports come from China. Even with tensions between the two countries—like border disputes—trade keeps growing.
Why the U.S. Is a Close Second?
The U.S. tells a different story. In 2023-24, India exported $77.5 billion worth of goods to the U.S.—things like medicines, diamonds, and petroleum products—while importing $40.8 billion, mostly high-tech items and oil. Unlike with China, India has a “trade surplus” with the U.S., earning $36.74 billion more than it spends. The U.S. loves Indian goods, and it’s one of the few countries where India comes out ahead in trade.
The U.S. was India’s top partner in early 2024 too, showing it’s still neck-and-neck with China. Plus, with the U.S. being a huge market and a key ally, this trade relationship is strong and steady.
What About Other Countries?
China and the U.S. aren’t the only players. The UAE ranks third with $83.6 billion in trade in 2023-24, thanks to oil and gold exchanges. Russia ($65.7 billion) and Saudi Arabia ($43.4 billion) follow, mostly because India buys a lot of their oil. Singapore ($35.6 billion) is also in the mix, trading electronics and chemicals. These countries make up India’s top trading crew, handling over 60% of its total trade.
Why Does This Matter?
Who India trades with affects everything—from the price of your phone to the jobs in your city. China’s lead means India relies heavily on its neighbor for tech and manufacturing goods, which can be tricky given their rocky relationship. The U.S. tie, on the other hand, boosts India’s exports and strengthens diplomatic bonds. Trade also shapes India’s economy: in 2022-23, international students (many from India) added $40 billion to the U.S. economy, showing how education ties into this too.
What’s Next?
Looking ahead, 2024-25 could shift the leaderboard again. With new U.S. policies under President Trump—like possible tariffs on other countries—India might export more to the U.S., potentially reclaiming the top spot. Meanwhile, India’s trying to cut its reliance on China by making more stuff at home (think “Made in India” phones). But for now, China holds the crown—barely.
So, who’s India’s largest trade partner? As of the latest full year, it’s China, with the U.S. hot on its heels. It’s a tight race that tells us a lot about where India shops and sells in the global market.
