Trade Balance

Trade Deficit

A country's trade balance, also referred to as commercial balance or net exports, is the difference between the monetary value of a nation's exports and imports over a certain time period. If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance.

The trade balance is likely to differ across the business cycle. In export-led growth (such as oil and early industrial goods), the balance of trade will shift towards exports during an economic expansion. However, with domestic demand-led growth (as in the United States and Australia) the trade balance will shift towards imports at the same stage in the business cycle.

A mature economy should aspire to become a net exporter as:

  • Imports make a country dependent on other countries' political and economic power. That's especially true if it imports commodities, such as food, oil, and industrial materials. It's dangerous if it relies on a foreign power to keep its population fed and its factories humming. For example, the United States suffered a recession when OPEC embargoed its oil exports.
  • Countries with high import levels must increase their foreign currency reserves to pay for the imports. This can affect the domestic currency value, inflation, and interest rates.
  • Domestic companies should be able to compete with foreign companies that import similar goods and services to their businesses.

A country's trade balance, also referred to as commercial balance or net exports, is the difference between the monetary value of a nation's exports and imports over a certain time period. If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance.

The trade balance is likely to differ across the business cycle. In export-led growth (such as oil and early industrial goods), the balance of trade will shift towards exports during an economic expansion. However, with domestic demand-led growth (as in the United States and Australia) the trade balance will shift towards imports at the same stage in the business cycle.

A mature economy should aspire to become a net exporter as:

  • Imports make a country dependent on other countries' political and economic power. That's especially true if it imports commodities, such as food, oil, and industrial materials. It's dangerous if it relies on a foreign power to keep its population fed and its factories humming. For example, the United States suffered a recession when OPEC embargoed its oil exports.
  • Countries with high import levels must increase their foreign currency reserves to pay for the imports. This can affect the domestic currency value, inflation, and interest rates.
  • Domestic companies should be able to compete with foreign companies that import similar goods and services to their businesses.
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SUBJECT Variables
Also referred to as commercial balance or net exports, is the difference between the monetary value of a nation's exports and imports over a certain time period.
Trade Balance | India | 2013 - 2023 | Data, Charts and Analysis
Data and insights on India's Trade Balance - current and historical values on deficit and surplus, top countries, and its economic impact
2013,2014,2015,2016,2017,2018,2019,2020,2021,2022,actual,amount,amounts,analysis,annual,chart,charts,current,data,economic impact,economy,figure,figures,gdp,graph,graphs,historical,india,indian,indicator,indicators,info,information,level,levels,statistics,stats,trade balance,value,values,what,year,yearly
01/04/2013 To 31/03/2023
Trade Deficit
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Trade Deficit
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TOTAL AMOUNT
Total
Source: Department of Commerce
Negative value denotes a deficit and positive value denotes a surplus
Goods & Services
Source: Department of Commerce
Negative value denotes a deficit and positive value denotes a surplus
  • India's trade balance recorded a deficit of USD 117.8 billion in 2022-23, a 41% increase over the previous year.
  • The trade deficit in 2022-23 was primarily attributed to goods (merchandise) exports where India imported goods worth USD 263.1 billion more than what it exported. India fared comparatively better in its exports of services in 2022-23 contributing a net amount of USD 145.3 billion to the economy.
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ECONOMIC IMPACT
% of GDP
Source: Department of Commerce | Reserve Bank of India
Negative value denotes a deficit and positive value denotes a surplus
  • India's trade deficit of USD 117.8 billion in 2022-23 was equivalent to 3.48% of its GDP
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TOP COUNTRIES
Negative Trade Balance
Source: Department of Commerce

Countries where India's Imports exceed its Exports. The values denote the net amount payable to the country.

  • China continued to maintain its dominant position as a net exporter to India and one to whom India owed a net amount of USD 83.2 billion in 2022-23
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