Trade Deficit of India with China soars to $ 31.42 bn
India’s trade deficit with its largest trading partner China reached a humongous $ 31.42 billion as the bilateral trade fell by 1.5% in 2013, recording a declining trend for the second consecutive year.
Compared to 2012, India’s trade deficit surged by $ 2.5 billion in 2013, which brought into attention the failure of Indian exports to make headway into China despite repeated assurances by China to address India’s concerns.
As per the trade data from January to December 2013 released by the Chinese customs:
- Bilateral trade between the two countries was also showing a decreasing trend for the second consecutive year.
- Bilateral trade reached $ 65.47 billion in 2013, a slight decrease of 1.5% compared to year 2012.
- In 2011, the bilateral trade was $ 74 billion and it slipped to $ 66.7 billion in 2012.
- Chinese exports to India rose slightly to stand at $ 48.44 billion for the 2013, whereas Indian exports to China decreased by around 10% to $ 17 billion, causing a trade deficit of $ 31.42 billion to India.
About India-China Trade:
Trade between India and China is seen as a stabilizing factor in Sino-India relationship. In 2011, China emerged as India’s largest trading partner when the bilateral trade reached a record $ 74 billion. Both the countries have set a trade target of $100 billion to be achieved by 2015. However, many are doubtful over the possibility of this realizing this goal as there are a number of systemic impediments. Since 2011, India’s exports to China have decline by 20%. The fall in exports was largely due to curbs on the export of iron ore, which had emerged as India’s single biggest export to resource-hungry China. In response to India’s concerns on widening trade deficit, China has promised to open up its market to Indian IT and pharmaceuticals. It is hoped that Indian exports to China will improve following the MoUs inked during Chinese Premier Li Keqiang visit to India to facilitate India’s exports of oil meal, pharmaceuticals, marine products and buffalo meat.