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India’s trade deficit with China shrunk to $5.8 billion in the April-June 2020-21 period from $13.1 billion in the same period last fiscal as a result of the Centre’s efforts to increase exports and reduce imports from the neighbouring country, Commerce & Industry Minister Piyush Goyal has said.
The Centre had consistently taken steps to balance trade with China by increasing exports and reducing India’s dependence on imports from the neighbouring country, the Minister said in a written reply to a starred question in the Lok Sabha on Wednesday.
India’s total trade with China also declined in April-June 2020-21 to $16.55 billion from $21.42 billion in April-June 2019-20.
In fiscal year 2019-20, India’s trade deficit with China was $48.64 billion which was lower than the trade deficit of $53.56 billion in 2018-19. The major items that exhibited fall in India’s imports from China in 2019-20 include accumulators and batteries, man-made yarn & fabric, aluminium and its products, glass & glassware, paper, paper board & products and other plastic items.
At present, approximately 550 tariff lines are under the ‘restricted’ / ‘prohibited’ category for imports under the Foreign Trade Policy, imports of which are restricted from all countries including China, the Lok Sabha was informed.
The Centre has been taking continuous steps to bridge the trade deficit by lowering trade barriers for Indian exports to China as well, the Minister stated. During the 11th session of India-China Joint Group on Economic Relations (JEG) held in New Delhi on March 26, 2018, the two countries agreed to increase bilateral trade in a more balanced and sustainable manner. Various meetings were subsequently held to obtain market access for various Indian agricultural, dairy, and pharmaceutical products in light of the potential of these products in the Chinese market, as per a reply to yet another question on Indo-China trade.
Various protocols have been signed to facilitate export of Indian rice, rapeseed meal, tobacco and fishmeal / fish oil, chilli meal, from India to China, it added.
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