International trade is essential for promoting economic growth, international collaboration, and diplomatic ties in the era of globalization, where economies are interconnected with each other. The India-Ukraine connection has emerged as a potential and dynamic alliance among the numerous bilateral trade agreements that influence the world economy. This blog covers the main aspects of bilateral trade between India and Ukraine, highlighting its growth potential and importance on the economic front.
India and Ukraine had trade ties for centuries. The first recorded trade between the two countries dates back to the 14th century, when Indian merchants travelled to Ukraine to trade spices, textiles, and other goods, as per Global Trade Data. In the 17th century, the Mughal Empire established trade relations with the Cossack Hetmanate, a Ukraine state. This trade continued until the 18th century when the Russian Empire annexed Ukraine.
After the collapse of the Soviet Union in 1991, India and Ukraine established diplomatic relations and began to rebuild their trade ties. Bilateral trade between the two countries has grown significantly in the last 25 years, reaching US $3.386 billion in 2021–22, as per India Trade Data.
As we know, the trade partnership between India and Ukraine in 2022–23 has been significantly impacted by the Ukraine war and the COVID-19 pandemic. The war has disrupted supply chains and led to higher prices for commodities, making it more difficult for Indian and Ukraine businesses to trade with each other.
In 2022, the volume of bilateral trade between India and Ukraine decreased to 2.58 billion USD from 3.386 billion USD in 2021, as per Ukraine Trade Data. India's exports to Ukraine decreased by 22.8%, to 85.49 million USD, while its imports from Ukraine decreased by 17.3%, to 1.69 billion USD, as per India import Data.
Also Read: Russia-India Extensive Global Trade Report
According to Ukraine Export Data, the top commodities exported by Ukraine to India are:
Fats and oils of vegetable origin: This includes sunflower oil, which is the most important export from Ukraine to India. In 2022, Ukraine exported 1.24 billion USD worth of fats and oils of vegetable origin to India, making it the top export commodity.
Food industry residues and waste: This includes wheat bran, which is used in animal feed. In 2022, Ukraine exported 30.6 million USD worth of food industry residues and waste to India, based on Ukraine export data.
Flying machines: This includes aircraft parts and engines. In 2022, Ukraine exported 18.2 million USD worth of flying machines to India.
Nuclear reactors, boilers, and machinery: This includes steam boilers and turbines. In 2022, Ukraine exported 16.8 million USD worth of nuclear reactors, boilers, and machinery to India.
Other products: Other major commodities exported by Ukraine to India in 2022 include iron and steel, plastics and polymers, and electrical machinery, as per India import export data.
The bilateral trade between India and Ukraine has been on a downward trend since 2020. There are a number of factors that have contributed to this decline, including the COVID-19 pandemic, the Ukraine war, and the Indian government's restrictions on imports from Ukraine.
The COVID-19 pandemic: The COVID-19 pandemic disrupted supply chains and led to lower demand for goods and services. This had a negative impact on trade between India and Ukraine, as well as trade between all countries.
The Ukraine War: The Ukraine War has disrupted trade between India and Ukraine in several ways. First, it has led to the closure of ports and other transportation routes, making it difficult to move goods between the two countries. Second, it has caused the prices of commodities to rise, making it more expensive for Indian businesses to import goods from Ukraine. Third, it has created uncertainty about the future of the Ukraine economy, making Indian businesses less willing to invest in Ukraine.
The Indian government's restrictions on imports from Ukraine: The Indian government has imposed some restrictions on imports from Ukraine, such as a ban on the import of sunflower oil. These restrictions have also contributed to the decline in trade. Also, Get Ukraine Import Data
The depreciation of the Ukraine currency: The Ukraine currency, the hryvnia, has depreciated significantly since the start of the war. This has made Ukraine goods more expensive in India, making them less competitive with goods from other countries.
The rising cost of shipping: The cost of shipping has also risen since the start of the war. This has made it more expensive to import goods from Ukraine, regardless of the currency exchange rate.
Despite these challenges, India and Ukraine are committed to maintaining and expanding their trade ties. The two countries have signed several agreements to promote trade and investment, and they are working together to find ways to overcome the challenges posed by the pandemic and the war.
Also Read: Foreign Trade Policies Signed between India-USA
The future outlook for India and Ukraine's trade ties is uncertain. The ongoing Ukraine war is a major challenge to the trade relationship, and it is difficult to say when the war will end or what the long-term impact will be.
There are some factors that could support the recovery of India-Ukraine trade ties in the future. These factors include:
If the ongoing Russia-Ukraine war comes to an end soon and the two countries overcome the economic and political challenges posed by the war, then there is potential for the trade relationship to recover and even grow in the future.
Finding Export Import Data for India can be a challenging task for traders looking to grow their reach in the international market. One of the best websites to find Indian trade data is Seair Exim Solutions. We provide import and export data, HS codes, and other market information to search and analyze products and services that are traded the most in the target market, along with crucial details such as verified buyers, suppliers, importers and exporters lists, shipment details, etc. Also, we have comprehensive Global Trade Data that allows traders to make the right decision and help them expand their businesses in the international market.
In conclusion, the India-Ukraine trade relationship has a long and complex history. The relationship has been disrupted by a number of factors in recent years, including the COVID-19 pandemic and the Russia-Ukraine war. So the future outlook for India and Ukraine's trade ties is uncertain, but there is potential for the trade relationship between India and Ukraine to grow in the future.
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