India-China trade deficit touches $51.5 billion in April-Octobertext_fields
New Delhi: The trade deficit between India and China has touched $51.5 billion during April-October this fiscal. The difference between imports and exports during 2021-22 jumped to $73.31 billion as compared to 44.03 billion in 2020-21.
The data was mentioned in a written reply by Commerce and Industry Minister Piyush Goyal to the Rajya Sabha at the Parliament today.
"Imports during April-October this fiscal stood at $60.27 billion, while exports aggregated at $8.77 billion," said the minister.
He added that the merchandise exports from India to China have increased from $11.93 billion in 2014-15 to $21.26 billion in 2021-22, showing an increase of 78.2% over the last six years. Imports from China have increased from $60.41 billion in 2014-15 to $94.57 billion in 2021-22.
"The trade deficit with China in 2004-05 was $1.48 billion, which increased to $36.21 billion in 2013-14, an increase of 2,346%. Against this massive increase, the trade deficit with China has since increased by only 100% to $73.31 billion in 2021-22," stated Goyal.
He also said that most of the imported goods from China are capital goods, intermediate goods, and raw materials. They are used for meeting the demand of fast-expanding sectors like electronics, telecom, and power in India.
"The rise in import of electronic components, computer hardware, peripherals, telephone components, etc. can be attributed to transforming India 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," mentioned the reply.
Speaking about imports from China, minister of state for commerce and industry Anupriya Patel said that many imports are inputs for further manufacturing in India and exports from India. "The major goods imported from China include electronic goods, organic and inorganic chemicals, medicinal and pharmaceutical products, fertilisers, crude and manufactured and dyeing/tanning/colouring materials."