List of Top 10 Export and Import Source of India

Between the months of April and November in the year 2019, the Indian Export Value was around US＄ 356.96 billion in total. The USA was the largest destination for export activity in India. The country accounted for about 15.88% of the entire Indian export. However, the largest source for importing in India was China. In this article, we are going to discuss the list of top 10 export and import sources of India. We are also going to shed some light on the topic of import and export regarding the trade situation of a country. 

In the present times, the Indian economy is known to be the 5th largest one in the world, based on the nominal GDP. The Indian government plans on reaching the export target of ＄900 billion by the time 2020 comes and that is in the Foreign Trade Policy. 

Understanding More About Import and Export

The main difference between export and import is in the process of trading. Import can be defined as a form of particular trade where the goods are brought into any particular country from the other foreign countries. This can be done for the purpose of business. However, export can be defined as a form of particular trade where any domestic company will sell the goods to foreign countries. This transferring and selling of goods forms a very important part of commerce in the country. India is one of the countries that tend to take part in this type of trade. Hence, it is important to know about the list of top 10 exports and important sources of India. 

Comparison Between Import and Export

Definition of Import

Import basically can be used to refer to a particular type of foreign trade where services and goods are brought into the domestic country from other sources in foreign countries. The main purpose of importing goods is to sell them in the domestic market and gain profit. The procedures that are used in the importing of goods are trade inquiry, obtaining a license for import, procuring foreign exchange, order placement, fund arrangement, receipt of shipment, retiring import documents, goods arrival, customs clearing, the release of goods, etc. 

Definition of Export

In the case of export, it can be defined as a particular form of trade where a portion of the domestically manufactured goods and services are sent to some foreign countries. This is due to the increase in demand from the buyers that are overseas. The processes that come to effect during exporting are, inquiry as well as sending of quotations receipt, order receipt, determining the credibility of the importer, license obtaining, production of goods, pre-shipment inspection, obtaining a certificate of origin, shipping space reservations, forwarding, and parking, insurance of different goods, customs clearance, invoice preparation, payment securing, etc. 

Key Differences Between Import and Export

In order to have a better understanding of the topic mentioned, there is a need to understand the key differences between Importing and Exporting. This way the students will be able to understand exactly what India export source is and what is the source of the import in India. 

According to the name, Import is basically the process regarding the transfer of goods from a foreign country to the home country. The main purpose being the transfer of the goods and the services are to resell them in the domestic market and gain some profit. Conversely, the process of export is used to imply the entire process of sending the goods and services from a domestic source in the home country to the foreign country. This is done in order to ensure that the demand for the goods in the market of the foreign country is met properly. 

In the case of importing, the basic idea is to import the goods from another country to the home country in order to fulfill the increasing demand for certain items, services, and commodities in the domestic market. In case there are products that are in shortage in the home country and need refilling, the process of importing helps in that aspect. However, in the case of exporting, the basic idea here is to transfer the goods to another country in order to increase the coverage of the product in the market. This also increases the global presence of the products and goods as well. 

An increase in import activities of a country will show that there is a robust demand for the products in the domestic market. Hence, there will be a surplus in the economic growth of the country. Against that, an increase in the export activities of a country will be representative of a trade surplus. This means it will prove to be an added bonus for the overall growth of any country. 

What India Exports: Goods That are Exported by the Country

India has a very robust economy, thanks to all the trade relations that it has with other countries. Hence, there are certain goods and products that are exported from India to other countries. Some of the products that are exported to foreign countries from India are petroleum products, certain mineral fuels that include oil, precious metals, gems, machinery that includes computers, equipment, electrical machinery, organic products, steel, iron, chemicals, and other pharmaceutical products as well. 

What India Imports: Goods That are Imported to the Country

Apart from exporting, India also tends to play a very important part in the importing activity as well. This means some of the goods and products are transferred to India from other countries. So, it is important for students to know what India imports. Amongst the trade relations with other countries, the products that are imported to India include Crude petroleum, pearls, gold, petroleum products, precious stones, electronic components, telecom instruments, animal and vegetable fats, industrial machinery, plastic particles, medical apparatus, oils and much more. 

The Top Import Sources of India 

It can be seen easily from the table above that China tends to be the largest source of the importing of goods to India. China has a very large economy and hence it holds the major share of products that are imported to India in the first place. The total amount of Chinese exports that are provided to India reached up to about ＄74.72 billion in the year 2019. However, the total amount of goods exported from India to China was just ＄17.95 billion in the year 2019. Hence, it can be said that India is going through a deficit of trade that amounts to about ＄56.77 billion with the country of China. 

Top 10 Export Sources of India 

According to the table mentioned below, the USA seems to be the largest source of Exporting activities of India and the country is closely followed by the United Arab Emirates. 

Summary 

The trade relations between India and other foreign countries tend to differ a lot. We have seen that India has a trade deficit in the case of China. Apart from that, the trade between India and the USA seems to be going fine. India hopes to achieve more economic growth in the coming years with the help of import and export activities.