CNBCTV18 - The trade between India and China touched an all-time high of $135.98 billion in 2022, while New Delhi's trade deficit with Beijing crossed the $100 billion mark for the first time despite frosty bilateral relations, according to data released by Chinese customs on Friday. Read more
China's exports to India climbed to $118.5 billion, a year-on-year increase of21.7%. During 2022, China's imports from India dwindled to $17.48 billion, a year-on-year decline of 37.9%.
The trade deficit for India stood at $101.02 billion, crossing the 2021 figure of $69.38 billion. This is the first time the trade deficit, a serious concern constantly expressed by India, has crossed the $100 billion mark.
The trade between the two countries continued to boom despite border tensions following the military standoff in eastern Ladakh in May 2020.
Since the beginning of the last decade, bilateral trade between the two countries have recorded exponential growth. From 2015 to 2021, India-China bilateral trade grew by 75.30% and average yearly growth of 12.55%.
Officials say that while trade with China thrived on the availability of cheap Chinese goods to India, it has continuously resulted in the spiralling trade deficit India had with any other country.
The Embassy briefly said, "Our trade deficit concerns are two-pronged. One is the actual size of the deficit. Two is the fact that the imbalance has continuously been widening year after year".
The growth of trade deficit with China could be attributed to two factors: a narrow basket of commodities, mostly primary, that we export to China and second, market access impediments for most of our agricultural products and the sectors where we are competitive in, such as pharmaceuticals, IT/ITES.
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