In this page: Foreign Trade in Figures | Trade Compliance | Standards
India used to be a protectionist state for a long time, but the country has become progressively more open to international trade. Currently, trade represents 45.3% of the country's GDP. The country mainly exports petroleum oils (13.7%), diamonds (6.3%), medicaments (4.3%), articles of jewellery (2.7%), and rice (2.4%), while it imports petroleum oils (18.7%), gold (9.8%), diamonds (4.6%), coal and similar solid fuels (4.5%), petroleum gas and other gaseous hydrocarbons (4.2%). According to IMF Foreign Trade Forecasts, the volume of exports of goods and services increased by 3.9% in 2022 and is expected to further increase in 2023, reaching at 4.9%, while the volume of imports of goods and services increased by 10.1% in 2022 and is expected to increase by 7.2% in 2023.
India's main partners are the United States, China, the United Arab Emirates, Switzerland, Saudi Arabia, Bangladesh, and Hong Kong. The country has recently signed free trade agreements with South Korea and ASEAN, and has entered into negotiations with several partners (EU, MERCOSUR, Australia, New Zealand and South Africa). In 2021, Brazil and India signaled their interest in expanding the FTA that India has with MERCOSUR, but the expansion is still under negotiation, pending approval from other members of the South American bloc. India is currently the world’s fastest-growing large economy, as well as the world's eighth largest exporter and tenth largest importer of commercial services. However, India’s trade regime and regulatory environment still remains relatively restrictive.
The country's trade balance is structurally negative, given that the country imports nearly 80% of its energy needs. However, as India benefits from the fluctuations in world hydrocarbon prices for its imports, the country's trade deficit has been oscillating for the past few years. In 2021, India exported USD 395 billion worth of goods, while imports accounted for USD 572 billion, resulting in a negative trade balance of USD 176 billion. According to the WTO, in the same year, exports of services amounted to USD 240 billion, whereas the imports of services stood at USD 195 billion, leading to a decrease of the overall trade deficit, which amounted to USD 74 billion.
Foreign Trade Values | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 449,925 | 514,464 | 486,059 | 372,854 | 572,909 |
Exports of Goods (million USD) | 299,241 | 324,778 | 324,340 | 276,302 | 395,425 |
Imports of Services (million USD) | 153,960 | 174,925 | 178,322 | 152,860 | 195,956 |
Exports of Services (million USD) | 184,673 | 204,323 | 214,128 | 202,600 | 240,657 |
Source: World Trade Organisation (WTO) ; Latest available data
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Foreign Trade (in % of GDP) | 40.7 | 43.6 | 40.0 | 37.8 | 45.3 |
Trade Balance (million USD) | -148,134 | -186,692 | -157,678 | -95,450 | -176,721 |
Trade Balance (Including Service) (million USD) | -72,212 | -105,918 | -73,452 | -8,342 | -74,039 |
Imports of Goods and Services (Annual % Change) | 17.4 | 8.8 | -0.8 | -13.8 | 35.5 |
Exports of Goods and Services (Annual % Change) | 4.6 | 11.9 | -3.4 | -9.2 | 24.3 |
Imports of Goods and Services (in % of GDP) | 22.0 | 23.7 | 21.3 | 19.1 | 23.9 |
Exports of Goods and Services (in % of GDP) | 18.8 | 19.9 | 18.7 | 18.7 | 21.4 |
Source: World Bank ; Latest available data
Foreign Trade Forecasts | 2022 | 2023 (e) | 2024 (e) | 2025 (e) | 2026 (e) |
---|---|---|---|---|---|
Volume of exports of goods and services (Annual % change) | 9.4 | 3.7 | 4.7 | 4.9 | 4.4 |
Volume of imports of goods and services (Annual % change) | 9.6 | 7.5 | 5.4 | 5.5 | 5.5 |
Source: IMF, World Economic Outlook ; Latest available data
Note: (e) Estimated Data
Main Customers (% of Exports) |
2021 |
---|---|
United States | 18.1% |
United Arab Emirates | 6.4% |
China | 5.8% |
Bangladesh | 3.6% |
Hong Kong SAR, China | 2.9% |
See More Countries | 63.2% |
Main Suppliers (% of Imports) |
2021 |
---|---|
China | 15.3% |
United Arab Emirates | 7.6% |
United States | 7.3% |
Switzerland | 5.2% |
Saudi Arabia | 4.9% |
See More Countries | 59.8% |
Source: Comtrade, last available data
Source: Comtrade, last available data
To go further, check out our service Import/Export Flows.
Source: United Nations Statistics Division, Latest Available Data
Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Indian Rupee (INR) - Average Annual Exchange Rate For 1 MAD | 6.85 | 6.72 | 7.29 | 7.39 | 7.86 |
Source: World Bank - Latest available data.
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- Manufacturer's Commercial Invoice duly Signed and if possible Bank Attested
- Price list of the commodities in shipment
- Manual and Catalogue , write ups or Technical Literature for laboratory or Electronic equipment
- Import declaration and GATT Declaration sign and stamp by consignee (Two copies)
- Packing List duly signed
- Purchase Order
- Authority letter from Consignee
- Import Duty/ Warehouse / Octroi/ D.O Charges in advance
- Any applicable Special Import License
- Certificate of origin, mill test certificate, test report (applicable for metal and chemical groups only)
- Copy of IEC/BIN Number required from importer.
For clearance of all live plant and flower, a phytosanitary certificate is required from Plant Quarantine Officer.
In case of Drugs and Medicines, prior approval of assistant Drug Controller is necessary.
Delivery of radioactive materials and explosives can only be cleared if bill of entry is accompanied by NOC from the department of atomic energy or the Controller of Explosives.
To go further, check out our service Shipping Documents.
Anti-dumping and countervailing measures: Such measures are imposed from time-to-time to protect the domestic manufacturers from dumping.
Export subsidies and domestic support: Several export subsidies and other domestic support is provided to several industries to make them competitive internationally.
Procurement: The Indian government allows a price preference for local suppliers in government contracts and generally discriminates against foreign suppliers.
Service barriers: There are still some restrictions for foreign companies to enter some service-oriented sectors like insurance, banking, securities, motion pictures, accounting, construction, architecture and engineering, retailing, legal services, express delivery services and telecommunication.
Other barriers: Equity restrictions and other trade-related investment measures are in place to give an unfair advantage to domestic companies.
For the most current information on India’s Prohibited Import List, please see this document.
For more details consult the Bureau of Indian Standards website.
For the list of items brought under mandatory certification please consult the website of the Bureau of Indian Standards.
Click here for ‘Procedure for Granting BIS Certification'
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Latest Update: June 2023