Trade pacts help India cut deficits with UAE, Aus
NEW DELHI: The trade pacts with Australia and the UAE seem to be working in India’s favour as the trade deficit with both countries in FY24 declined vis-à-vis previous year. With Australia, the trade deficit fell to $8 billion from $12 billion in the previous year. With the UAE, India’s trade deficit fell to $12.4 billion from $21 billion in last year.
Exports to the UAE rose by 12.71% to $35.62 billion in FY24 with gems and jewellery registering a growth of 39.34% to $8.04 billion and organic chemicals seeing a 38.25% rise to $0.88 billion. Mineral exports saw a decline by 5.13% on yearly basis to $8.23 billion in FY24 and electronic items by 3.05% YoY to $3.53 billion during the same year. The UAE’s share in total Indian exports of 430 billion dollars stood at 8.1% in FY24.
Speaking of imports, total imports to UAE declined by 9.79% to $48 billion dollars in FY24 with minerals seeing a decrease of 36.35% on-year basis to $17.63 billion and fertilisers by 18.16% to $0.30 billion dollars. Meanwhile, gems and jewellery imports grew by 36% on year to $20.11 dollars and aircraft parts declined by 37.54% on year to $1.71 billion.
When it comes to Australia, mineral exports grew by 28.71% to $3.86 billion on yearly basis in FY24 and pharmaceutical products recorded a growth of 6.4% to 418.12 mln dollars. Chemical product exports fell by 49.5% on yearly basis to 66.86 mln dollars and gems and jewellery dipped by 13% to $0.29 billion.
Total exports to Australia stood at $7.94 billion in FY24, up 14.23% from a year-ago period. On the other hand imports fell by 15% to $16.15 billion in FY24 with minerals seeing a decline of 27.5% to $11.021 billion and cotton by 5% to $0.14 billion. Imports of gems and jewellery increased by 91% to $2.01 billion.
The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed on Feb 18, 2022, officially took effect on May 1, 2022, marking a historic milestone in the economic relations between the two nations.