Trade deficit, a source of friction between India and China, declined to a five year-low of $45.8 billion, the lowest since 2015. ... Two-way trade in 2020 reached $87.6 billion, down by 5.6%, according to new figures from China's General Administration of Customs.
The Government of India has recently made sustained efforts to achieve a more balanced trade with China, including bilateral engagements to address the non-tariff barriers on Indian exports to China.
Through these efforts, various MoUs have been signed to facilitate the export of Indian rice, tobacco, fishmeal /fish oil, and chili meal from India to China.
The Government has also taken measures to extend support to exporters by facilitating Buyers Seller Meets between potential importers of China and the Indian exporters to increase exports. Likewise, Indian exporters are encouraged to participate in major trade fairs to showcase Indian products.
The Government has taken the initiative to sensitize the Export Promotion Councils /Trade Bodies to enhance the export of Indian goods.
Recent details of export/import and trade deficit between India and China during the last three financial years and current financial year are given below: -
|
Financial Year |
Trade in Billion US$ |
Trade Deficit |
|
|
EXPORT |
IMPORT |
||
|
2017-18 |
13.3 |
76.4 |
63.0 |
|
2018-19 |
16.7 |
70.3 |
53.6 |
|
2019-20 |
16.6 |
65.3 |
48.6 |
|
2020-21 (Apr-Nov)* |
13.6 |
38.8 |
25.2 |
(Source: DGCIS)
*Provisional
The Government has also implemented policies to promote domestic manufacturing through ease of doing business and creating an enabling physical environment for manufacturing, through provision of developed land and infrastructure. A boost towards Atma Nirbhar complementing the Make in India initiative of the GOI.
