Indian Markets makes Advances

Indian Markets makes Advances

by Shreya Anaokar Last Updated: Dec 15, 2022 - 07:18 am 23.6k Views

According to  India's Ministry of Commerce and Industry's latest data, the US has become India's largest trading partner, exceeding China with bilateral trade reaching $ 119.42 billion. 

From the breakdown data, India's trade exports to the US increased from about $ 51.62 billion in the previous fiscal year to $ 76.11 billion, while imports increased from about $ 29 billion to about $ 43.31 billion. India's major exports to the US include polished diamonds, pharmaceutical products, jewelry, light oil and petroleum, frozen shrimp, cosmetics, and more. India's imports from the United States are mainly oil, liquefied natural gas, gold, coal, recycled products and scrap iron, large almonds, etc. The data also shows that the bilateral trade volume between India and China in the 2021-2022 fiscal year is about $ 115.42 billion, an increase of about 1/3 from the $ 86.4 billion in the previous fiscal year. 

Among them, India's exports to China are about $ 21.25 billion, and its imports to China are about $ 94.16 billion. It is reported that the trade volume of imported goods from China is increasing, and the top 100 imported items each have an import value of more than $ 100 million. Indian experts believe that India's dependence on China for imports of manufactured goods shows no sign of easing.

Inflation will return to the Reserve Bank of India’s mid-point target in the next two years with policy actions aimed at cooling price pressures set to take a toll on the economy. The inflation based on the consumer price index (CPI), would stay above the RBI’s target range of 2%-6% for the next three quarters. Failure to keep inflation within the mandated range for three straight quarters will force the RBI to write a letter to the federal government, explaining why it missed the target and lay out remedial measures. 

The RBI has already raised the benchmark repo rate by 90 basis points in the recent past and is poised to hike it further as the six-member rate-setting panel steps up its fight to cool prices. 

India witnessed a current account deficit of 1.2 percent of GDP in 2021-22 against a surplus of 0.9 percent in FY2020-21 due to a wider trade deficit. For the January-March 2022 quarter, the CAD narrowed on a sequential basis to $13.4 billion or 1.5 percent of GDP against $22.2 billion or 2.6 percent of GDP in the December 2021 quarter. A current account deficit occurs when the value of goods and services and other receipts by a country in a particular period. The trade deficit widened to $189.5 billion in FY22 from $1002.2 billion a year ago, which resulted in a slippage in the number which is considered a key representation of a country's external strength. The Balance of Payments data suggested that goods imports stood at $ 618.6 billion in FY22 as against $ 398.5 billion in the year-ago period, leading to the widening of the trade deficit.


How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. 


Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Outlook on Gold - 9 Jun 2023

Gold traded sideways after a 1% climb in the previous session, although gold headed for second straight weekly gains on bets that the U.S. Federal Reserve may pause rate hikes in its next week meeting. According to the Fed rate monitor tool, there was a 73.7% chance that the central bank will stand down from the rate hike next week. Market participants are keeping an eye on the next inflation reading due Tuesday.

  • Jun 09, 2023
Swing Trading Stocks: Week of 12 June 2023

Swing Trading Stocks for the Week

  • Jun 09, 2023
Weekly Market Outlook for 12 June to 16 June

In the week gone by, our markets continued its upmove during the mid-week and Nifty rallied towards 18800 mark. But it fell just short of making a new record and witnessed some profit booking towards the end of the week to end below 18600 with marginal weekly gains.

  • Jun 09, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number