India to Increase Fertiliser Imports from US
May 02, 2025 16:20
India is exploring ways to increase fertiliser imports from the US to reduce dependence on China and address trade imbalance with the US. This move aims to decrease India's trade deficit with the US.
Illustration: Uttam Ghosh/Rediff.com
New Delhi, May 2 (PTI) India is exploring ways to increase fertiliser imports from the US in a bid to reduce its dependence on countries like China and narrow the trade imbalance between New Delhi and Washington, an official said.
The country's fertiliser imports in 2024-25 dipped by 7.16 per cent to USD 8.29 billion in 2024-25 as against USD 8.92 billion in 2023-24 and USD 15.32 billion in 2022-23.
The top five import sources of India are Russia, Saudi Arabia, Oman, China, Morocco, and the US, the official said.
In the last fiscal, the inbound shipments of this commodity from Russia dipped by 11.18 per cent to USD 1.84 billion as compared to USD 2.07 billion in 2023-24. From China also, it declined by 61.13 per cent to USD 0.88 billion in 2024-25 from USD 2.25 billion in the previous fiscal.
The imports from the US too contracted by 27 per cent to USD 0.029 billion in 2024-25 from USD 0.039 billion in 2023-24.
The US has flagged concerns over the increasing trade deficit (difference between imports and exports) with India. In the last fiscal, India's exports to the US rose by 11.6 per cent to USD 86.51 billion as against USD 77.52 billion in 2023-24. The imports were up by 7.44 per cent in 2024-25 to USD 45.33 billion against USD 42.2 billion in 2023-24.
The trade surplus with America has touched USD 41.18 billion in the last fiscal from USD 35.32 billion in 2023-24. India and the US are negotiating a bilateral trade agreement with an aim to boost bilateral trade to USD 500 billion by 2030. Due to this increasing surplus, the US on April 2 announced sweeping tariffs against a number of countries including India.
However, on April 9, the additional 26 per cent duty on India was suspended till July 9 as both the countries are negotiating a trade agreement.
However, the inbound shipments from Saudi Arabia, Oman, and Morocco rose by 32.4 per cent, 54.93 per cent and 32.91 per cent to USD 1.48 billion, UD 1.07 billion and USD 0.81 billion respectively in 2024-25. The imports in 2023-24 from Saudi Arabia, Oman, and Morocco was USD 1.12 billion, USD 0.69 billion and USD 0.61 billion.
India is a major importer of fertilisers for its huge agriculture sector, which employs nearly half of the country's workforce.
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