Trade deficit between India and China drops to $51.5 billion in this fiscal year

New Delhi:

The trade deficit, the difference between imports and exports, between India and China was $51.5 billion in April-October this fiscal year, Parliament was informed today.

The deficit in 2021-22 had risen to $73.31 billion, compared to $44.03 billion in 2020-21, according to data provided by Commerce and Industry Minister Piyush Goyal in a written response to the Rajya Sabha.

According to the data, in April-October this fiscal year, imports totaled $60.27 billion, while exports totaled $8.77 billion.

He said India’s goods exports to China increased from $11.93 billion in 2014-2015 to $21.26 billion in 2021-22, an increase of 78.2 percent over the past six years.

Imports from China, on the other hand, increased from $60.41 billion in 2014-2015 to $94.57 billion in 2021-22.

“The trade deficit with China in 2004-2005 was $1.48 billion, which increased to $36.21 billion in 2013-2014, an increase of 2,346 percent. Against this massive increase, the trade deficit with China has since increased by only 100 percent to $73.31 billion in 2021-22,” said Goyal.

He informed that most of the goods imported from China are capital goods, intermediates and raw materials and are used to meet the demand of fast growing industries such as electronics, telecom and energy in India.

“The increase in imports of electronic components, computer hardware and peripherals, telephone components, etc. can be attributed to India’s transformation into a digitally empowered society and a knowledge economy. India’s dependence on imports in these categories is largely due to the gap between domestic supply and demand,” he added.

Responding to a question about imports from China, Minister of State for Trade and Industry Anupriya Patel said that many imports are inputs for further production in India and exports from India.

The main commodities imported from China include electronic goods, organic and inorganic chemicals, medicinal and pharmaceutical products, fertilizers, raw and manufactured materials, and dyeing/tanning/dyeing materials.

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