India's Trade with China up 49%, Shringla red-flags deficit

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India's Trade with China up 49%, Shringla red-flags deficit​

TNN / Oct 22, 2021, 01:14 IST

NEW DELHI: In the first nine months of this year, India’s trade with China touched $90 billion, an increase of 49% over last year, foreign secretary Harsh Shringla said on Thursday. However, there is a large trade balance in favour of China, and India will continue to raise the issue of widening deficit with China, he added.

“At this rate, we are likely to attain the highest-ever bilateral trade between two countries,’’ he said. The total trade volume between the two countries was around $88 billion.

The sharp increase in trade follows the military strife in eastern Ladakh and efforts by the government to reduce reliance on Chinese imports along with calls by many to boycott Chinese products.

Addressing a seminar on “Leveraging China’s Economy’’, Shringla said the developments along the LAC in eastern Ladakh had seriously disturbed peace and tranquility in border areas and that this had an impact on the broader relationship too. He expressed hope China would work with India for a mutually satisfactory resolution of the military standoff and allow progress in ties, keeping in mind each other’s aspirations, sensitivities and interests.

“Our trade deficit concerns are twofold — the first, is the actual size of the deficit. Trade deficit for the nine-month period stood at $47 billion. This is the largest trade deficit we have with any country. Second is the fact that the imbalance has continuously been widening,’’ said Shringla, adding that there were are a number of market access impediments, including a whole host of non-tariff barriers, for most of India’s agricultural products and the sectors Indians are competitive in, such as pharmaceuticals, IT/ITES, etc.

“We have highlighted that widening deficit and increase in trade barriers are issues of concern. These have been regularly flagged at the highest level, most recently at the 2nd Informal Summit between our Prime Minister and the Chinese President in Chennai in 2019. We also remain firm in our commitment of placing this trade relationship on a more sustainable footing and raising these issues at all appropriate occasions with the Chinese side. Developments since then, including the Covid pandemic, have not been helpful in our efforts to address these concerns," he said.

Trade with China up 49%, Shringla red-flags deficit | India News - Times of India

India News: In the first nine months of this year, India’s trade with China touched $90 billion, an increase of 49% over last year, foreign secretary Harsh Shrin

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