India's eastern neighbour China has emerged as its biggest trading partner in the current fiscal replacing the UAE and pushing it to the third spot, according to a study conducted by PHD Chamber of Commerce.
India-China trade has reached USD 49.5 billion with 8.7 per cent share in India's total trade, while the US comes second at USD 46 billion with 8.1 per cent share and the UAE third at USD 45.4 billion with 8 per cent share during the first nine months of the current fiscal, the study revealed.
The UAE was India's biggest trading partner in the 2012-13 fiscal.
India's trade (exports and imports) with China was only of USD 7 billion in 2004 which rose to USD 38 billion in 2008 and to USD 65 billion in 2013.
"India's direction of foreign trade has exhibited a structural shift during the last decade. Trade volume and trade share of emerging and developing economies has increased while the share of conventional trading partners has showed a declining trend," PHD Chamber President Sharad Jaipuria said.
However, with the revival of demand in advanced economies, the US has re-emerged as India's top exports destination. India's exports to the US during April-Dec 2013 stood at USD 29.3 billion followed by the UAE at USD 22.3 billion and China at USD 10.8 billion. In the 2012-13 fiscal, UAE was India's top exports destination followed by the US and Singapore, the study pointed out.
Besides, UK and Germany have come down in the list of the top export destinations, while Belgium and Italy are out of the list. On the other hand, Saudi Arabia and Netherlands have made it to the list of top ten export destinations.
One significant development in India's import scenario is the emergence of Saudi Arabia, UAE, Kuwait, Qatar, Iraq and Switzerland amongst the country's top ten import sources.
