India’s imports from China exceeded exports to its northern neighbor by nearly $70 billion in 2021 alone
India’s imports from China exceeded exports to its northern neighbor by nearly $70 billion in 2021 alone
The favorable trade balance that China has enjoyed with India since the boom in bilateral commerce in the early 2000s has cumulatively exceeded $1 trillion by estimates.
The trade gap has widened particularly in the past decade. In 2021, annual two-way trade surpasses $100 billion for the first time to reach $125.6 billion India’s imports are $ 97.5 billionestimated the imbalance at around $70 billion.
India’s imports of Chinese machinery and other equipment began a boom in trade relations since the early 2000s, rising from $3 billion in 2000 to $42 billion in 2008, the year China became India’s largest trading company. became a partner.
“China’s trade with India is one-sided and during this period China has favorable balance of trade It has crossed $1.2 trillion,” said Srikanth Kondapalli, who is a professor in Chinese studies and dean of the School of International Studies at Jawaharlal Nehru University. “That is, in net figures, Chinese businesses made so much money [from India],
While some economists say that India’s trade imbalance with China should not be viewed in isolation – for example, pharmaceuticals that India exports to the world require ingredients to be imported from China – Mr. Kondapalli said that over an extended period the imbalance created problems.
Furthermore, China’s commitment to India to import significantly more Indian goods, particularly pharmaceuticals, has not materialized, although Chinese import of Indian seafood There is one area that has shown strong growth recently.
“These surpluses are consistent, and not addressed over a period of time, lead to a current account deficit problem for India,” he said.
The imbalance in 2022 is set to surpass last year’s record figure. In the six months ended June, India’s imports from China increased by 34.5% to a record $57.51 billion, according to China trade data released in July. However, India’s exports to China declined by 35% and contributed only $9.57 billion out of the two-way trade of $67.08 billion.
China’s third quarter trade data, which was due to be released this week but has been delayed due to the ongoing Communist Party Congress, is expected to reflect continued growth in Indian imports. India’s biggest imports last year were electrical and mechanical machinery, chemicals used in industrial production, active pharmaceutical ingredients and auto components. India also imported medical supplies during the pandemic.