India’s import from FTA partner nations up 38% in FY24 against FY19 | Economy & Policy News

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.

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.

“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.

First Published: May 13 2024 | 10:33 PM IST