April 13, 2022
The trade deficit for the period was documented at US$ 22.23 billion.
A 15.3% year-on-year increase was registered in the volume of trade facilitated in the first quarter of 2022.
India’s export portfolio in relation to China is chiefly characterized by iron ore. India imported electronic devices and chemicals.
India’s import preferences are seen to have evolved from intermediate goods to capital goods.
The January-March 2022 period saw China’s exports to India grow to US$ 27.1 billion and imports to US$ 4.87 billion, according to the Chinese Customs data . As a result, the trade deficit was registered at US$ 22.23 billion. Indo-China bilateral trade reached a record high mark of US$ 125 billion in 2021. US$ 31.96 billion of trade was facilitated in the first quarter of 2022 alone, marking a 15.3% year-on-year increase. With regard to the export portfolio, iron ore was the chief commodity imported by China from India; however, the second quarter of 2021 saw a 26.1 % year-on-year decline in the level of imports. Electronic devices, manufactured goods and chemicals were the chief commodities exported by China to India. Over time, India’s imports from China have evolved from intermediate goods to capital goods. China, on the other hand, has concentrated its export portfolio to a select few products, especially industrial products.
In terms of import penetration, China’s imports to India have increased from 1.9% to 2.6% between 2007 and 2016. India’s import penetration rate is seen to have fallen from 0.44% to 0.11% during the same period. Trade costs for agricultural and manufacturing commodities are also seen to have increased. Experts at the PhD Chamber of Commerce and Industry (PHDCCI) observe that bilateral trade between the nations can be radically improved if bottlenecks to trade are resolved and a more balanced approach is arrived at.