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“India’s exports to China are growing faster than imports” – Mintpaisa

Since trade between India and China started to pick up, export growth to China has far outpaced import growth, a commerce ministry official said.

Since trade between India and China started to pick up, export growth to China has far outpaced import growth, a commerce ministry official said.

India’s trade equation with China has improved in recent years, with outbound shipments growing faster than imports, the growth of which is largely driven by vital raw materials or to meet demand from high demand sectors. growth such as telecommunications and electricity, said a senior government official.

China is one of India’s major trading partners, with trade flows between the two countries increasing by 59% from around $72 billion in 2014-15 to $115.4 billion in 2021-22.

“Since trade between India and China started to pick up, the growth of exports to China has been much higher than the growth of imports,” an official with the Ministry of Commerce said. The Hindu.

From $11.9 billion in 2014-2015, India’s exports to China rose 78.1% to $21.25 billion last year, while imports stood at 94 .16 billion dollars, or 55.8% more than the 60.4 billion dollars recorded in 2014-2015. By contrast, imports from China increased by 192 percent between 2006-07 and 2013-14, when they topped $51 billion, he pointed out.

Intermediate goods account for more than a third of India’s imports from China, while capital goods account for another 19.3%, with telecommunications and power sector equipment being the main drivers, which has to meet domestic demand in these booming sectors, the official said.

The main items imported from China are electronic components, computer hardware and peripherals, telecommunication instruments, organic chemicals, industrial machinery for dairy products, residual chemicals and related products, electronic instruments, bulk drugs and intermediates.

“India’s dependence on these Chinese products can be largely attributed to the gap between domestic production and demand, and China being a manufacturing hub and having price competitiveness due economies of scale and subsidies provided by its government to Chinese industry,” the official noted. .

Production-related incentive programs for different sectors will help reduce dependence on these imports over time, although technical regulations developed for products such as toys, electronics, chemicals and fertilizers will control substandard imports, he stressed.

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