India's trade deficit with China mounts to $ 31.42 bn

[beijingwalker]

India's trade deficit with China mounts to $ 31.42 bn
By PTI | 10 Jan, 2014, 05.46PM IST

BEIJING: India's trade deficit with its top trading partner China continued to mount, touching a whopping $ 31.42 billion as the bilateral trade declined by 1.5 per cent in 2013, registering a downward trend for the second consecutive year.

India's trade deficit increased by $ 2.5 billion compared to 2012, bringing into sharp focus the failure of Indian exports to make headway into China despite repeated promises by Beijing to address India's concerns.

Trade data from January to December 2013 released by the Chinese customs today showed that India-China bilateral trade, too, was on a declining trend for the second year.

The bilateral trade touched $ 65.47 billion, a slight dip of 1.5 per cent year-on-year. The bilateral trade declined to $ 66.7 billion 2012 from around $ 74 billion in 2011.

In the face of declining bilateral trade - which was attributed to a host of reasons, including depreciation of Indian rupee, officials here are sceptical about the $ 100 billion target to be achieved by 2015, fixed by the top leadership of both the countries.

As per the preliminary data released by the customs, Chinese exports to India have climbed marginally to settle at $ 48.44 billion for the entire year, where as Indian exports to China dipped by a little under 10 per cent to $ 17 billion, causing a trade deficit of $ 31.42 billion to India.

The continued decline in trade will be a major challenge for the new Indian AmbassadorAshok K Kantha as flourishing trade was regarded as a major factor of stability in Sino-Indian ties.

Kantha took charge this month, succeeding S Jaishankar who was transferred to Washington as Indian envoy to the US.

The mounting trade deficit was the main topic of conversation during the visits of Chinese Premier Li Keqiang to India and Prime Minister Manmohan Singh's visit here last year during which China promised to address India's concerns by opening up to Indian IT and pharmaceuticals.

China also proposed to step up its investments in India by establishing Chinese investment parks.

Chinese officials have visited several Indian states in this regard and the final decision was expected to be announced after the general elections in India this year.

Indian exports to China were expected to improve following the MOUs signed during Li's visit to facilitate India's exports of oilmeal, pharmaceuticals, marine products and buffalo meat.

 

[djsjs]

India should open its market and embrace world econemy.

 

[Nan Yang]

You usually open up your market only when your local manufacturing has been consolidated and able to compete with large multi-national companies.

If your local manufacturing is not competitive enough, it will be destroy. But if you do not open up your market local manufacturing will never improve.

Its a double edge sword.

 

[neehar]

India should open its market and embrace world econemy.

please explain..what do u mean by "open your market" when we have trade deficit with you??it means u are not opening ur markets to us!!

the most important reason for this might be electronics.india has started developing fab cities across the country.it might take a while to show the results.things will be comfortable by 2020.i'm sure we will be able to make our own electronics by then.

 

[dontsuspendme]

What i am more surprised is that we have trade deficit of $29billion with switzerland!!!!

 

[neehar]

What i am more surprised is that we have trade deficit of $29billion with switzerland!!!!

perhaps they included the bank accounts of our politicians also!

 

[Android]

China should open up its market for Indian IT companies

 

[dontsuspendme]

perhaps they included the bank accounts of our politicians also!

something is fishy with swizz...Their entire trade is around $30billion with india...

 

[djsjs]

China should open up its market for Indian IT companies

what do you want to indicate?

 

[armchairPrivate]

Nah. I don't believe it. As usually China made up these numbers. India in fact has a huge trade surplus with China by just exporting onions, onions, and more onions. That's why India had an onion shortage earlier this year.

 

[idune]

China should open up its market for Indian IT companies

So india can re export Chinese code (copy paste) and devise. That would not be profitable. India should open up land border with China for trade and lower its tariff to benefit indian citizens. Because even with regulatory, tax, political barriers and with anti China media propaganda, deficit increased. It is only futile to hold back.

Despite all these whining from indian media and establishment, there is no other way but indian deficit going up in coming years.

 

[Beidou2020]

India wants our goods but we don't want Indian crap.

 

[Kiss_of_the_Dragon]

Seems Indians like Chinese cheap copy junks than Chineses for Indian luxury goods.

 

[madooxno9]

What i am more surprised is that we have trade deficit of $29billion with switzerland!!!!

They are one of the very few countries which has trade surplus with almost every nation.

 

[Genesis]

China should open up its market for Indian IT companies

We just did, Indian businesses are very existed to go into our market. It was all over the news a few month back.
Though I don't know how successful you guys will be, due to the fact we are about the same price but we don't need English.

When I was freelancing programing in Canada, I was beat very time by Indians due to low low price and you guys know English, so I only did a few jobs here and there that needed more of a hands on approach, and wanted Canadian "talent." I'm no larry ellison.

But in China, price is no object, and we don't speak English and you don't speak Chinese so....