Issue No: 21
India’s merchandise
with China ($billion)
Moneta
July 2017
marginally by 3%. The wide deficit is
because India's imports from China
are five times more than its exports
to that country.
trade
Over the past 10 years, India's
merchandise trade (exports and
imports together) with China soared
177 percent from $25.8 billion in
2006-07 to $71.48 billion in 2016.17.
The highest amount of trade
happened in 2011-12 when the
aggregate figure stood at $73.39
billion. In the 10-year period, China
was No. 2 trading partner for India for
five years after the United Arab
Emirates and No.1 for the balance
five years.
The above mentioned information
shows that India needs to develop a
lot in the manufacturing sector to
reduce the trade deficit of over 51.09
billion USD with China. So India is
not going to irk China unless it
becomes self-sufficient or at least
less dependent on Chinese imports.
IV.
But like all other countries, India
takes anti-dumping measures by
restricting some imports which cause
huge job loss in the manufacturing
sector and minimum cost benefit to
the consumers.
Trade Deficit with China
(in $ billion)
The Indian side has very less to
discuss but what if China reduces its
trading relations with India?
India's trade deficit with China has
shown a tremendous rise of 458%
from $9.15 billion in 2006-07 to
$51.09 billion in 2016-17. It had the
highest growth of 77.8% in 2007-08.
In 2016-17 the trade deficit declined
India is also among top 10 trading
partners of China.
After 2008, demand for Chinese
goods has declined significantly in
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