India's imports from China are increasing in July while its exports to China have declined, The Economic Times reported Wednesday, citing data from the Ministry of Commerce and Industry.
India's exports to China in the month totaled $1.05 billion, marking a 9.44 percent decrease compared to the same period last year. Imports from China reached $10.28 billion, up 13.05 percent from a year ago.
From April to July, data shows that India’s exports to China fell by 4.54 percent to $4.8 billion, while imports grew by 9.66 percent to $35.85 billion. During this period, India’s trade deficit amounted to $31.31 billion.
Regarding the increase in imports from China, Commerce Secretary Sunil Barthwal stated that no country in the world, including the United States and the European Union, can completely decouple from China.
He also noted that India is one of the fastest-growing major economies in the world, with increasing consumption. Barthwal added that if imports rise in proportion to exports or domestic consumption, there is no cause for concern.
China became India’s largest trade partner again in the fiscal year 2024, which runs from April 2023 to March 2024. The bilateral trade volume reached $118.4 billion, with India’s exports to China increasing by 8.7 percent to $16.67 billion, and imports rising by 3.24 percent to $101.7 billion. The trade deficit grew from $83.2 billion in the fiscal year 2023 to $85 billion.
China had previously been India’s largest trade partner in the fiscal years 2014, 2018, and 2021 but lost the top spot to the United States in the fiscal year of 2022 to 2023 due to the severe deterioration in relations following a military clash in the Galwan Valley in Ladakh in June 2020.
India has implemented measures to protect its domestic industries, including restrictions on visas for Chinese nationals, bans on Chinese mobile apps, delays in approving Chinese investments, and reductions or suspensions of direct flights between the two countries.
reporter
Kim Joo-heon
jhkim123@ajunews.com
