Strong trade momentum for India in December quarter: Unctad – The Times of India

NEW DELHI: India has seen sturdy items and companies trade momentum in the Dec quarter, a report by UN physique Unctad has stated however cautioned that world trade may very well be hit by the coverage shifts in the US and trade and geopolitical tensions.
Moreover, it has pointed to excessive duties confronted by growing international locations, limiting market entry for their items. The company’s newest International Trade Replace stated that exports from South Asia face among the many highest tariffs, averaging round 4%, whereas imports to the area and Africa see the very best common levy of round 8%.
It, nonetheless, identified that regardless of having decrease tariffs in common, developed international locations preserve “tariff peaks” with duties as excessive as over 100% for a number of farm items. Usually, South Asia topped the checklist on this rely too.

The report stated growing international locations maintained larger duties on imports to help nascent industries, and still have extra elbow room throughout trade negotiations. For some international locations, it was additionally a income instrument, with taxes on worldwide trade producing 10-30% of govt income.
Unctad stated when it got here to items trade, India and China noticed sturdy momentum in the Dec quarter, reporting growths of 7% and 5%, respectively. “Growing nations, significantly China and India, noticed higher than common trade enlargement, whereas many developed nations skilled trade contractions,” it stated.
India’s export of items and companies grew 6.3% in 2024 (calendar yr) as in opposition to world annual trade development of 3.7%. India’s exports of items and companies rose to $ 817.4 billion in 2024, in contrast with $769 billion in 2023.
South Africa noticed a 13% bounce in companies exports, whereas India grew 3% in the course of the Dec quarter.
It additionally highlighted India’s excessive trade deficit, particularly with China and Russia, which have been among the many highest for bilateral trade. Throughout 2024, the US had the very best trade deficit with China ($355 billion), adopted by that with the European Union ($241 billion). India’s trade deficit of $103 billion with China was seventh amongst bilateral buying and selling companions, adopted by the $65 billion with Russia at quantity 12.
In recent times, India’s exports to China have declined, widening the trade deficit, whereas the hole with Russia has elevated on account of massive portions of crude petroleum being shipped into the nation as oil firms search a discount and export completed merchandise to different components of the world in the wake of sanctions in opposition to Moscow.