Foreign trade in India includes all imports and exports to and from India. At the level of the Central Government, trade is administered by the Ministry of Commerce and Industry.[1] Foreign trade accounted for 48.8% of India's GDP in 2018.[2]
History
Template:See also Even before independence, the Government of India maintained semi-autonomous diplomatic relations. It had colonies (such as the Aden Settlement), who sent and received full missions,[3] and was a founding member of both the League of Nations[4] and the United Nations.[5] After India gained independence from the United Kingdom in 1947, it soon joined the Commonwealth of Nations and strongly supported independence movements in other colonies, like the Indonesian National Revolution.[6] The partition and various territorial disputes, particularly that over Kashmir, would strain its relations with Pakistan for years to come. During the Cold War, India adopted a foreign policy of non-alignment policy itself with any major power bloc. However, India developed close ties with the Soviet Union and received extensive military support from it.
Around 100CE
The Periplus of the Erythraean Sea is a document written by an anonymous sailor from Alexandria around 100 CE, describing trade between countries, including India.
Around 1500
In 1498, Portuguese explorer Vasco da Gama landed in Calicut (modern day Kozhikode in Kerala), and was the first European to ever sail to India. The tremendous profit made during this trip made the Portuguese eager for more trade with India and attracted other European navigators and tradesmen.[7]
Pedro Álvares Cabral left for India in 1501 and established Portuguese trading posts in Calicut and Cochin (modern day Kochi), returning to Portugal in 1501 with pepper, ginger, cinnamon, cardamom, nutmeg, mace, and cloves. The profits made from this trip were substantial.[8]
1991 economic reform
Template:Main Prior to the 1991 economic liberalisation, India was a closed economy due to the average tariffs exceeding 200 percent and the extensive quantitative restrictions on imports. Foreign investment was strictly restricted to only allow Indian ownership of businesses. Since the liberalisation, India's economy has improved mainly due to increased foreign trade.[9] Reforms in India in the 1990s and 2000s aimed to increase international competitiveness in various sectors, including auto components, telecommunications, software, pharmaceuticals, biotechnology, research and development, and professional services. These reforms included reducing import tariffs, deregulating markets, and lowering taxes, which led to an increase in foreign investment and high economic growth. From 1992 to 2005, foreign investment increased by 316.9%, and India's GDP grew from $266 billion in 1991 to $2.3 trillion in 2018.[10][11]
Trade in services
Template:See also As of 2023, India is the seventh largest exporter of commercial services in the world,[12] accounting for 4.6% of global trade in services. India's service exports grew by 27%.[13] In September, India's prominent services industry experienced an acceleration in growth, buoyed by robust demand in the sector. A recent survey also indicated that businesses displayed the highest level of optimism in over nine years. According to S&P Global's India services purchasing managers' index, there was an increase to 61.0 last month from August's figure of 60.1. This surpassed projections in a Reuters poll, which had anticipated a slight dip to 59.5.[14][15]
The spectrum of India's services exports encompasses a diverse array of sectors, ranging from information technology (IT)[16] to the provision of medical services by professionals overseas. The RBI, while not providing monthly disaggregated data on services exports, periodically releases a classification of such exports as part of its quarterly balance of payment data. This classification encompasses transport, travel, construction, insurance and pensions, financial services,[17] telecommunications, computer and information services, as well as personal, cultural, recreational services, among other business services.
Within India's services export landscape, software exports retain a dominant position. However, noteworthy is the recent surge in "other business services" exports, which constituted 24 percent of the total services exports in the initial nine months (April–December) of FY23.[18] This marks a notable increase from the 19 percent reported in FY14. This category encompasses a range of services including legal services, accounting, auditing, book-keeping, tax consultancy services, management consulting, managerial and public relations services, as well as advertising, market research, and public opinion polling services.
Exports and imports
India exports approximately 7500 commodities to about 190 countries, and imports around 6000 commodities from 140 countries.[19]
Pharmaceutical industry
Oil and gas industry
Diamond Processing
Automotive Industry
Trade statistics
Overall foreign trade data in billion US$[20]
| FY | Merchandise Exports | Merchandise Imports | Total Merchandise Trade | Merchandise Trade Balance | Service Exports | Service Imports | Total Service Trade | Service Trade Balance | Net Overall Trade |
|---|---|---|---|---|---|---|---|---|---|
| 2024-25 | 437.416 | 720.243 | 1157.659 | -282.827 | 387.540 | 198.717 | 586.257 | +188.823 | -94.004 |
| 2023-24 | 437.072 | 678.215 | 1115.287 | -241.143 | 341.107 | 178.324 | 519.431 | +162.783 | -78.360 |
Summary table of recent India foreign trade (in billion $):[21][22][23]
| Year | Export | Import | Trade Deficit |
|---|---|---|---|
| 1999 | 36.3 | 50.2 | -13.9 |
| 2000 | 43.1 | 60.8 | -17.7 |
| 2001 | 42.5 | 54.5 | -12.0 |
| 2002 | 44.5 | 53.8 | -9.3 |
| 2003 | 48.3 | 61.6 | -13.3 |
| 2004 | 57.24 | 74.15 | -16.91 |
| 2005 | 69.18 | 89.33 | -20.15 |
| 2006 | 76.23 | 113.1 | -36.87 |
| 2007 | 112.0 | 100.9 | 11.1 |
| 2008 | 176.4 | 305.5 | -129.1 |
| 2009 | 168.2 | 274.3 | -106.1 |
| 2010 | 201.1 | 327.0 | -125.9 |
| 2011 | 299.4 | 461.4 | -162.0 |
| 2012 | 298.4 | 500.4 | -202.0 |
| 2013 | 313.2 | 467.5 | -154.3 |
| 2014 | 318.2 | 462.9 | -144.7 |
| 2015[24] | 310.3 | 447.9 | -137.6 |
| 2016 | 262.3 | 381 | -118.7 |
| 2017 | 275.8 | 384.3 | -108.5 |
| 2018 | 303.52 | 465.58 | -162.05 |
| 2019 | 330.07 | 514.07 | -184 |
| 2020 | 314.31 | 467.19 | -158.88 |
| 2021 | 420 | 612 | -192 |
| 2022[25] | 676.53 | 760.06 | -83.53 |
| 2023 | 770.18 [26] | 892.18 | -122 |
| 2024[27] | 820.93 | 915.19 | -94.26 |
Trading partners of India
See also
- Economy of India
- Foreign relations of India
- Remittances to India
- Business process outsourcing to India
- List of exports of India
- List of Indian states and union territories by exports
- List of largest trading partners of India
- Indian diaspora
- Indianisation
- Directorate General of Foreign Trade (DGFT)
- Merchandise Export from India Scheme
- Make in India
- India Inc.
- Medical tourism in India
- Electronics and semiconductor manufacturing industry in India
References
- ↑ Country comparison: Exports. Central Intelligence Agency. Retrieved 5 June 2017.
- ↑ Human Development Report 2018. narendhar. Retrieved 21 March 2017.Template:Dead link
- ↑ High Commission of India in Australia: India Australia Relations Template:Webarchive. Hcindia-au.org (20 April 2011). Retrieved 12 November 2011.
- ↑ First Assembly, Geneva, 15 November – 18 December 1920 Template:Webarchive. Indiana.edu (18 December 1920). Retrieved 12 November 2011.
- ↑ UN list of members by admission Template:Webarchive. Un.org. Retrieved 12 November 2011.
- ↑ [1] Template:Dead linkTemplate:Cbignore
- ↑ Traditional Exports of India: Performance and Prospects{{#if:John|, John}. New Century Publications(2004). ISBN 81-7708-062-8
- ↑ Traditional Exports of India: Performance and Prospects{{#if:John|, John}. New Century Publications(2004). ISBN 81-7708-062-8
- ↑ International Economics & Trade - India: Foreign Trade Policy. Retrieved 20 October 2011.Template:Dead link
- ↑ Dutta, M. K. and Sarma, Gopal Kumar, Foreign Direct Investment in India Since 1991: Trends, Challenges and Prospects (1 January 2008).
- ↑ Since 1991, Budget size grew 19 times, economy 9 times; your income 5 times. The Economic Times. Retrieved 29 August 2020.
- ↑ Service exports (BoP, current US$) | Data. data.worldbank.org. Retrieved 2023-03-17.
- ↑ India's services exports rise record 27% in FY23, shows RBI data | IBEF. India Brand Equity Foundation. Retrieved 6 October 2023.
- ↑ India's services sector grew at faster pace in Sept, optimism at 9-year high. www.msn.com(5 October 2023). Retrieved 6 October 2023.
- ↑ India Services Activity Gains on Solid Demand at Home and Abroad. Bloomberg.com(5 October 2023). Retrieved 6 October 2023.
- ↑ Economic Survey 2022: IT exports drive 18.4% growth in India’s services exports between April-Dec. The Economic Times(31 January 2022). Retrieved 6 October 2023.
- ↑ India: value of financial services export by type 2021. Statista. Retrieved 6 October 2023.
- ↑ India's services exports rise record 27% in FY23, shows RBI data(2 May 2023). Retrieved 6 October 2023.
- ↑ Macroeconomics and Elementary Statistics{{#if:|, {{{last}}}}. ISBN 9788187140900
- ↑ Monitoring dash board. Department of Commerce. Retrieved 9 August 2025.
- ↑ India - Imports - Historical Data Graphs per Year. Retrieved 27 December 2015.
- ↑ The World Factbook. www.cia.gov. Retrieved 27 December 2015.
- ↑ Export Import Data. www.eximatlasindia.com. Retrieved 24 March 2018.
- ↑ Total Trade. commerce.nic.in. Department of Commerce. Retrieved 20 December 2015.
- ↑ India’s overall exports projected to scale new heights, growing at 13.84 percent during FY 2022-23 over FY 2021-22 to achieve USD 770.18 billion worth of exports.. pib.gov.in(13 April 2023). Retrieved 7 October 2023.
- ↑ India's overall trade deficit in FY 22-23 jumps to $122 billion, says govt. mint(13 April 2023). Retrieved 7 October 2023.
- ↑ The cumulative exports (merchandise & services) during FY 2024-25 (April-March) is estimated to grow by 5.50% at US$ 820.93 Billion, as compared to US$ 778.13 Billion in FY 2023-24 (April-March).. Press Information Bureau: Government of India. Retrieved 16 April 2025.