In Financial Year (FY) 2023-24, India has recorded a trade deficit — the difference between imports and exports — with nine of its top ten trading partners. They include China, Russia, Singapore, and Korea. The trade deficit with China rose to $85B, Russia to $57.2B, Korea to $14.71B, and Hong Kong to $12.2B in FY 2023-24. The data also showed that the deficit with China, Russia, Korea, and Hong Kong increased in the last fiscal year compared to 2022-23, while the trade gap with the UAE, Saudi Arabia, Russia, Indonesia, and Iraq narrowed. China has emerged as India's largest trading partner with $118.4B, edging past the US. The bilateral trade between India and the US stood at $118.28B. To a great extent, this explains why PM Modi has not been able to name China as the aggressor though there have been skirmishes involving Sikh soldiers between the troops of both nations and the Chinese have occupied Indian land. Meanwhile, on 22 May, the Reserve Bank of India (RBI) approved a dividend of $25B for the Indian govt. for FY 2023-24. This marks a significant increase of around 141% compared to FY 2022-23. The RBI has also raised the Contingency Risk Buffer (CRB) to 6.5% from its previous level of 6%. According to interim budget documents for the ongoing financial year, the Indian govt. budgeted a dividend of $12.21B from the RBI, Public Sector Banks, and other financial institutions. This huge payout will help whoever forms the next govt. in India.
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