bilateral trade Current Affairs

India-China trade hits record $84.4 billion in 2017

According to data of Chinese General Administration of Customs, India-China bilateral trade has reached $84.44 billion last year, a historic high with 18.63% year-on-year growth rate.

This is regarded as historic landmark in bilateral relations of both countries, as volume of bilateral trade for first time has touched $80 billion, well above the $71.18 billion registered in 2016.

Key Facts

India has emerged as the seventh largest export destination for Chinese products, and 24th largest exporter to China.

India’s imports and exports: It has increased by 39.11% year-on-year to $16.34 billion in 2017. India’s imports from China have increased by 14.59% to $68.10 billion.

Significantly, diamonds along with copper, iron ore, organic chemicals and cotton yarn contributed to increase Indian exports to China. China’s exports on other hand were dominated by electrical machinery and equipment,

India’s trade deficit: It continues to remain high at $51.75 billion, registering a growth of 8.55% year-on-year in 2017. To arrest it, India is pressing China to open its IT and Pharmaceutical sectors for Indian firms, fertilizers, organic chemicals and pharmaceutical antibiotics.

Comment

The bilateral trade has touched historic high despite bilateral tensions over number of bilateral issues including China-Pakistan Economic Corridor (CPEC), China blocking India’s efforts to bring about UN ban on Jaish-e-Mohammad leader Masood Azhar and blocking India’s entry into Nuclear Suppliers Group (NSG) as well as military standoff at Doklam plateau near Sikkim and Bhutan, lasting 73 days.

For several years, bilateral trade between India and China had stagnated around $70 billion, despite they had set target of $100 billion in 2015. Though it is still about $20 billion short, it is expect trade and Chinese investments in India to pick up further as both governments are trying to scale down tensions and step-up normalisation process.

Month: Categories: Business & Economy Current Affairs 2018

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India, Russia sign customs pact to boost trade

India and Russia have signed a customs and liberalize business visas agreement to boost trade between both countries to remove the hindrances and boost commerce.

This pact will help to rapid clearances of imported goods at the land and sea ports and addresses the issues related to the non-tariff barriers. Both countries also have fixed a target of US 30 billion dollars to be achieved by 2025.

This agreement will play important role proposed International North-South freight corridor (INSTC) for trade from India to Russia to central Asia through Iran.

Presently, bilateral trade between both nations is extremely low and it was just 9.51 billion dollars. In Ufa, Russia prior to BRICS ministerial meeting Prime Minister Narendra Modi and his Russian counterpart President Vladimir Putin had discussed ways to increase bilateral trade.

Both countries also had reached an agreement on setting up a Joint Study Group which will recommend contours of a Free Trade Agreement (FTA) between India and Eurasian Economic Union (EEU) comprising Russia, Kazakhstan, Belarus and Armenia.

Month: Categories: Business & Economy Current Affairs 2018International Current Affairs 2018

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