India’s trade gap with china declines to $48.66 billion | The Daily Star
10:41 AM, July 03, 2020 / LAST MODIFIED: 10:43 AM, July 03, 2020

India’s trade gap with china declines to $48.66 billion

India's trade gap with China declined to USD 48.66 billion in the 2019-20 financial year due to a fall in imports from that country, according to official data.

China accounts for about 14 percent of India's imports and is a major supplier for sectors like mobile phones, telecom, power, plastic toys, and critical pharma ingredients.

Exports to China in the last financial year was estimated at USD 16.6 billion, while imports totaled USD 65.26 billion, the data showed.

The trade deficit between the two countries was at USD 53.56 billion in 2018-19 financial year and USD 63 billion in 2017-18.

The two countries are now in the midst of a military standoff at the unresolved border along the Himalayas following a violent clash in eastern Ladakh on June 15, which left 20 Indian soldiers dead. China suffered about 45 casualties as well.

India's main imports from China include clocks and watches, musical instruments, toys, sports goods, furniture, mattresses, plastics, electrical machinery, electronic equipment, chemicals, iron and steel items, fertilisers, mineral fuel and metals.

India has repeatedly voiced concerns over widening trade deficits with China and is taking steps like framing technical regulations and quality norms for several products to reduce dependence on China for imports.

India has also imposed anti-dumping duties on several goods from China which are sold below average prices, with the new duties being set with a view to guarding domestic players from cheap imports.

As many as 371 products have been identified for technical regulations. Of these, regulations have been formulated for 150 products worth about USD 47 billion of imports.

Over 50 quality control orders and other technical regulations have been notified in the past one year including on electronic goods, toys, air conditioners, bicycle parts, chemicals, safety glass, pressure cooker, items made of steel, and electrical items such as cables.

Foreign Direct Investment (FDI) from China into India too has dipped to USD 163.78 million in 2019-20 from USD 229 million in the previous fiscal, according to the data.

Top sectors which saw maximum FDI from China in the last two decades are automobiles (USD 987.35 million), metallurgical (USD 199.28 million), electrical equipment (USD 185.33 million), services (USD 170.18 million), and electronics (USD 151.56 million).

In April this year, India tightened FDI norms coming from the countries which share land borders with India. It, however, did not name China among the countries.

 

Stay updated on the go with The Daily Star Android & iOS News App. Click here to download it for your device.

Grameenphone:
Type START <space> BR and send SMS it to 22222

Robi:
Type START <space> BR and send SMS it to 2222


Banglalink:
Type START <space> BR and send SMS it to 2225

Leave your comments

Top News

Top News

Top