India's trade grew strongly; deficits with China, Russia

India's trade in goods and services showed strong growth in the last quarter of 2024, according to a report by UNCTAD. However, the report warns that global trade may face challenges due to changes in U.S. policies and ongoing trade tensions. The report highlights high tariffs that developing countries face, which limit their access to global markets. In South Asia, exports are subject to average tariffs of around 4%. Imports to the region and Africa have even higher average tariffs of about 8%. Meanwhile, developed countries often maintain high tariffs, particularly for agricultural products. Unctad noted that India and China experienced significant trade growth in the December quarter, with India’s goods and services exports rising by 6.3% in 2024. This is compared to a global trade growth of 3.7%. India’s total exports reached $817.4 billion in 2024, up from $769 billion the previous year. South Africa also saw an increase in services exports, growing by 13%. However, India reported a considerable trade deficit, particularly with China and Russia. In 2024, India's trade deficit with China was $103 billion and with Russia was $65 billion. India’s trade relationship with China has been strained in recent years, leading to a wider trade deficit. The import of crude oil from Russia has also contributed to the increasing trade gap. Overall, the report suggests that while India is experiencing growth in trade, it must navigate various global challenges.