India’s trade with China crossed $125 billion in 2021, with imports from China approaching a record $100 billion, underscoring the continued demand for a range of Chinese goods, especially machinery.
Over the past 12 months, data from the General Administration of Customs of China, released on January 14, showed that the value of goods imported by India from China exceeded total bilateral trade in 2019. Business fell from $92.8 billion in 2019 to $87.6 billion in 2020. Of the pandemic
Trade picked up in 2021 due to an improvement in demand as well as increased imports of new categories of goods such as medical supplies. Bilateral trade reached $125.6 billion in 2021, of which India’s imports from China accounted for $97.5 billion.
Imports grew 30% from 2019, while India’s exports to China, which stood at $28.1 billion, were up 56% from two years ago. The trade deficit reached $69.4 billion last year, up 22% from the pre-pandemic figure in 2019.
While a break-up of imports and exports was not immediately available, India’s largest exports to China in recent years were iron ore, cotton and other raw material-based commodities, which have seen demand recovery in China over the past year. India has seen an improvement in demand in China. Imported large quantities of electrical and mechanical machinery, active pharmaceutical ingredients (APIs), auto components and, over the past two years, a range of medical supplies from oxygen concentrators to PPE.
The year-on-year growth of 43% in bilateral trade with India was the highest among China’s major trading partners. Trade figures with China’s top three trading partners increased 28.1% ($878.2 billion) with ASEAN, 27.5% ($828.1 billion) with the European Union and 28.7% with the United States at $755.6 billion. showed growth.
GAC spokesman Li Kuiwen said China’s medical exports had more than doubled in 2021, while laptops and home appliances grew 13% in line with rising global demand for “stay at home” devices. Despite China’s strong trade performance and recovery in 2021, with imports and exports rising 30%, officials warned of the risk of disruption to global supply chains as the world continues to deal with the impact of the more permeable Omicron variant in the new year Is.
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