Economics International Relations

The UNCTAD report highlights shifts in India’s trade relations

  • The United Nations Conference on Trade and Development (UNCTAD) Global Trade Report indicated a developing trade landscape for India, with a greater reliance on China and the European Union (EU).


  • UNCTAD is a permanent international organisation created by the United Nations General Assembly in 1964.
  • It is part of the United Nations Secretariat.
  • The UNCTAD Conference typically meets every four years.
  • It reports to the United Nations General Assembly and the Economic and Social Council, but has its own membership, leadership, and budget.
  • It is also a member of the United Nations Development Group.
  • It helps developing countries reap the benefits of a globalised economy in a more equitable and effective manner.
  • Reports published by the UNCTAD are-
  1. Trade and Development Report
  2. World Investment Report
  3. Technology and Innovation Report
  4. Digital Economy Report


  • UNCTAD membership includes all 195 member states of the United Nations.
  • India is an active member. The second UNCTAD Conference was held in New Delhi, India, in 1968.

Key Highlights of the Report:

  1. Key Findings on India
  • Trade Trends: India’s trade dependency on China and the EU increased by 1.2%, while its reliance on Saudi Arabia decreased by 0.6%.
  • Factors: This transition occurred during supply chain interruptions caused by the pandemic and the Russia-Ukraine conflict, which resulted in record-high food and fuel prices.
  • Policy Measures: Despite efforts to lessen reliance on China through measures such as the Production-Linked Incentive (PLI) scheme and Quality Control Orders (QCOs), India’s commercial relations with China have improved.
  1. Insights from the Report
  • Stable Proximity: The geographic proximity of international trade has remained generally consistent, demonstrating minimal near-shoring or far-shoring patterns.
  • Political Proximity: However, there has been a considerable increase in the political proximity of commerce, which benefits countries with comparable geopolitical viewpoints.
  • trading Concentration: Major trading ties dominated global commerce, yet this trend slowed by the end of 2023.
  • Sectoral Trends: With the exception of pharmaceuticals, transportation equipment, and electric vehicles, the majority of sectors saw a decrease in trade values.
  • Global Forecast: Global merchandise trade is forecast to fall 5% in 2023, while services trade is expected to grow 8%.
  1. Impact of Russia-Ukraine Conflict
  • The protracted war increased Russia’s trade dependency on China by 7.1% and decreased its reliance on the EU by 5.3%.
  • Oil Trade: Russian oil switched from the EU to China and India, with China emerging as an important trading partner for Russia.
  • US Trade Dynamics: In 2023, the US managed to reduce dependency on China by 1.2%, while growing reliance on the EU and Mexico.

Leave a Reply

Your email address will not be published. Required fields are marked *

And get notified everytime we publish a new blog post.