Datanomics: Modi's visit may further boost trade ties with five countries

PM Narendra Modi's five-nation tour underscores India's push to deepen trade ties as exports to these countries outpace imports despite a cumulative trade deficit

Prime Minister Narendra Modi's five-nation tour of the United Arab Emirates (UAE), the Netherlands, Sweden, Norway, and Italy concludes on May 20, highlighting India's overarching aim to strengthen relations with these countries. India currently has a trade deficit with these countries, which cumulatively stood at $34 billion between FY21 and FY25. However, these countries accounted for 14 per cent of India's total exports but only 10 per cent of its total imports during this period. The government has signed a bilateral trade deal with the UAE regarding oil imports, with crude petroleum and petroleum products accounting for 37 per cent of total imports in FY26. 

India's share of exports to the five countries increased from 9.93 per cent in FY21 to 14.63 per cent in FY26. Over the same period, the share of imports from these countries rose moderately from 9 per cent to 10.19 per cent. 

 

During FY26, most countries had a higher share in India's exports than in its imports, with the exception of the UAE. Sweden shared it evenly. 

 

India’s exports and imports in FY26 largely depended on a single commodity or group of commodities.