Prior to the onset of the Russia-Ukraine conflict, Russia held a market share of less than 1% in India's imported goods assortment. However, as a consequence of the conflict, Russia's portion of India's oil imports surged significantly, surpassing 40%.
In the fiscal period spanning April to July, India's imports from Russia saw a noteworthy expansion, totalling $20.45 billion. This growth was primarily attributed to the augmented arrival of crude oil and fertilizer from Russia, as indicated by data from the commerce ministry.
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As a result, Russia has now ascended to the position of being India's second-largest source of imports during the initial four months of this fiscal year. This stands in contrast to the $10.42 billion worth of imports recorded during the corresponding April-July period of 2022.
Prior to the commencement of the Russia-Ukraine conflict, Russia held a market share of below 1 percent in the assortment of goods India imports. Subsequently, Russia's portion of India's oil imports experienced a substantial surge, exceeding 40 percent.
India, known as the world's third-largest importer of crude oil following China and the United States, engaged in purchasing Russian oil at a discounted rate. This discount stemmed from the Western world's avoidance of Russian oil as a punitive measure against Moscow for its involvement in the Ukraine invasion.
The data from the ministry demonstrated a decline in imports from China, amounting to $32.7 billion during the April-July timeframe, in contrast to the $34.55 billion recorded in the same period of the preceding year.
Likewise, during the examined timeframe, imports from the US saw a decrease to $14.23 billion from $17.16 billion in April-July 2022. Simultaneously, imports from the UAE also experienced a contraction, amounting to $13.39 billion in April-July 2023, as compared to $18.45 billion in the corresponding period of the previous year.
Shifting focus to exports, India's outbound trade to seven out of its top ten destinations revealed a negative growth rate throughout this period.
Within the initial four months of this fiscal year, India's merchandise exports to the US, UAE, China, Singapore, Germany, Bangladesh, and Italy witnessed a decline. However, exports to the UK, Netherlands, and Saudi Arabia displayed a positive growth trend.
In July of this year, India's exports underwent a contraction of 15.88 percent, marking the sixth consecutive month of decline. This downturn can be attributed to a worldwide economic deceleration and a decline in shipments from significant sectors such as petroleum, gems, and jewelry.
Concurrently, imports in the same month exhibited a 17 percent decrease, making it the eighth consecutive month of decline. The import value dropped from $63.77 billion in July 2022 to $52.92 billion. This resulted in the trade deficit narrowing to $20.67 billion, in contrast to the $25.43 billion recorded in July 2022.
