Current Context : India has recorded a trade deficit with nine of its top 10 trading partners, including China, Russia, Singapore, and Korea, in 2023-24. 

RELEVANT FACTS:

• The trade deficit with China rose to $ 85 billion in 2023-24 against $ 83.2 billion in 2022-23.
• With Russia rose to $ 57.2 billion comparatively $ 43 billion in 2022 – 23.
• Korea to $ 14.71 billion against $ 14.57 billion in 2022-23 and Hong Kong to $ 12.2 billion against $ 8.38 billion in 2022-23 respectively
• China has emerged as India’s largest trading partner with $ 118.4 billion of two-way commerce in 2023-24, edging past the
• India has a trade surplus of $ 36.74 billion with the US in 2023-24.
• America is one of the few countries with which India has a trade surplus.
• The surplus is also there with the UK, Belgium, Italy, France and Bangladesh.

ABOUT TRADE DEFICIT :

• A trade deficit means that the country is importing more goods and services than it is exporting.

TRADE SURPLUS :

A trade surplus occurs when a country has a positive balance of trade, means the country exports more goods and services than it imports.