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India’s Trade Deficit With China Touches $51.5 Bn During April-Oct Of This Fiscal

Electronics, organic and inorganic chemicals, medicinal and pharmaceutical products, fertilisers, crude and manufactured dyeing, tanning and colouring materials are major among Chinese imports

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The trade deficit of India with China reached USD 51.5 billion during April-October this fiscal.

According to data provided by commerce and industry minister Piyush Goyal in a written reply to the Rajya Sabha on Friday, the deficit in 2021-22 increased to USD 73.31 billion from 44.03 billion in 2020-21.

According to the data, imports totalled USD 60.27 billion from April to October of this fiscal year, while exports totalled USD 8.77 billion.

Goyal said that India's merchandise exports to China have increased by 78 per cent in the last six years, from USD 11.93 billion in 2014-15 to USD 21.26 billion in 2021-22.

In contrast, Chinese imports have increased from USD 60.41 billion in 2014-15 to USD 94.57 billion in 2021-22.

The trade deficit with China was USD 1.48 billion in 2004-05, which increased to USD 36.21 billion in 2013-14, an increase of 2,346 per cent; however, the trade deficit with China has since increased by only 100 per cent to USD 73.31 billion in 2021-22, Goyal said.

He said that most of the goods imported from China are capital goods, intermediate goods and raw materials used to meet the demand of India's rapidly expanding sectors such as electronics, telecommunications and power.

The increase in imports of electronic components, computer hardware and peripherals, telephone components and so on can be attributed to India's transformation into a digitally empowered society and a knowledge economy, he added.

In response to a question about Chinese imports, Anupriya Patel, minister of state for commerce and industry said that many imports are inputs for further manufacturing in India and exports from India.

Electronics, organic and inorganic chemicals, medicinal and pharmaceutical products, fertilisers, crude and manufactured dyeing, tanning and colouring materials are major among Chinese imports.


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india-china trade trade deficit