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Business News›News›Economy›Foreign Trade›India’s trade dependence on China, EU
rose in Q1 of 2024, says UNCTAD



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INDIA’S TRADE DEPENDENCE ON CHINA, EU ROSE IN Q1 OF 2024, SAYS UNCTAD

SECTIONS
India’s trade dependence on China, EU rose in Q1 of 2024, says UNCTAD
By
Kirtika Suneja

, ET BureauLast Updated: Jul 02, 2024, 11:51:00 PM IST
Synopsis


THE UNCTAD NOWCAST PREDICTS A STRONGER POSITIVE TREND FOR THE SECOND QUARTER OF
2024, PROJECTING AN APPROXIMATE 2% INCREASE FOR THE FIRST HALF OF 2024. THIS
INCREASE IS EXPECTED TO ADD AROUND $250 BILLION TO GOODS TRADE AND ABOUT $100
BILLION TO SERVICES TRADE IN THE FIRST HALF OF 2024 COMPARED TO THE SECOND HALF
OF 2023.

Reuters
India’s trade dependence on China and the EU increased in the first quarter of
2024 while it reduced on Saudi Arabia, the United Nations Trade and Development
(UNCTAD) said Tuesday.

In its Global Trade Update, it said that the global trade trends have turned
positive and global trade growth was driven by increased exports from China,
India, and the US, while Europe and Africa disappointed.



As per the report, India’s trade dependence on the EU and China increased 1% and
1.2%, respectively while that on Saudi Arabia fell 0.5% in the quarter.


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“Global trade growth in the first quarter of 2024 was primarily driven by
increased exports from China (9%), India (7%) and the US (3%),” it said.

Conversely, Europe’s exports showed no growth and Africa’s exports decreased by
5%.



On the export side, China and India exhibited very strong quarter-over-quarter
export performance, according to the Geneva-based organisation.

During the first quarter of 2024, trade growth in developing countries and
South-South trade outpaced that in developed countries.

“Current global trade trends have turned positive, with goods trade increasing
by around 1% quarter over quarter (QoQ ) in Q1 2024. Services trade grew at
approximately 1.5% QoQ,” UNCTAD said.

Trade growth varied across sectors, with green energy and AI-related products
experiencing stronger increases.

The UNCTAD nowcast predicts a stronger positive trend for the second quarter of
2024, projecting an approximate 2% increase for the first half of 2024. This
increase is expected to add around $250 billion to goods trade and about $100
billion to services trade in the first half of 2024 compared to the second half
of 2023. If positive trends persist, global trade in 2024 could reach almost $32
trillion, yet it is unlikely to surpass its record level seen in 2022.

The outlook for 2024 remains positive, but geopolitical issues and industrial
policies will continue reshaping global trade patterns, it said.



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