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India’s imports from its key free trade agreement (FTA) partner nations grew at a faster pace compared to total inbound shipments entering the country, according to a report.
Imports from the FTA partners saw a nearly 38 per cent increase, totalling $187.92 billion in 2023-24 (FY24), which was faster when compared to the 31.4 per cent jump to $675.45 billion in the country’s overall imports.
The growth in shipments spans a five-year comparison, from 2018-19 (FY19) to FY24, Delhi-based think tank Global Trade Research Initiative (GTRI) said.
On the other hand, India’s total outbound shipments to its FTA partners grew at a slower pace compared to total merchandise exports.
Exports from FTA nations increased by 14.48 per cent to $122.72 billion, while total exports saw a 32 per cent growth at $437 billion.
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This includes India’s trade agreements with South Korea, Japan, Australia, United Arab Emirates (UAE), Mauritius, the 10-member Association of Southeast Asian Nations (Asean) nations, and the South Asian Free Trade Area. These countries constituted 28 per cent of India’s total trade — exports and imports — during FY24.
Undeniably, the data shows all exports from an FTA partner; part of this may not use concessions given under the trade pacts. Besides FTAs with Australia, UAE and Mauritius came into force in 2022 and 2021, respectively.
“This growth highlights the significant and varied impact of FTAs on India’s global trade dynamics,” GTRI said in a report.
The trade agreement with Asean, which kicked in in 2010, saw growth in imports at a faster pace than exports. Exports to Asean countries grew from $37.47 billion in FY19 to $41.21 billion in FY24, marking a 9.96 per cent increase. On the other hand, imports from Asean saw a 34.3 per cent jump, totalling $79.67 billion.
“Exports to South Korea rose by 36.38 per cent, from $4.71 billion to $6.42 billion, and imports increased by 26.12 per cent, from $16.76 billion to $21.14 billion. Exports to Japan showed a modest increase of 6.06 per cent, from $4.86 billion to $5.16 billion, while imports rose by 38.56 per cent, from $12.77 billion to $17.7 billion.
The report further said that exports started at $330.1 billion in FY19, dipped to $291.8 billion by 2020-21 (FY21) due to the pandemic-related disruptions, recovered sharply to $422 billion in 2021-22 (FY22), and peaked at $451.1 billion in 2022-23 (FY23).
“A slight dip to $437.1 billion in FY24 suggests stabilisation,” it said.
Imports were more volatile, starting at $514.1 billion in FY19, falling to $394.4 billion in FY21, and then surging to $716 billion in FY23, before slightly decreasing to $675.4 billion in FY24.
