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India's trade deficit with China widens to Rs 6.67 lakh cr in FY 2022-23
Jul 27, 2023 07:24 AM (IST)The bilateral trade between India and China from FY 2018-19 to FY 2022-23 has shown a mixed trend. In the past five years, India’s exports rose by 36.6% from $330.07 billion in 2018-19 to $450.95 billion in 2022-23. At the same time, India’s imports rose by 38.8% from $514.07 billion in 2018-19 to $714.04 billion in 2022-23. This resulted in trade deficit widening to Rs 6,67,947 crore in 2022-23 as compared to Rs 5,46,873 crore in 2021-22. The data was shared by the government in the Lok Sabha on Wednesday.
The government defended the high trade deficit, saying most of the goods imported from China are capital goods, intermediate goods and raw materials. These are used for meeting the demand of fast expanding sectors such as electronics, telecom and power. Imports like active pharmaceutical ingredients (APIs) and drug formulations provide the Indian pharma industry raw material for producing finished goods which are also exported.
India’s dependence on imports in above categories is largely due to the gap between domestic supply and demand for which the government has launched production linked incentive (PLI) schemes in 14 strategic sectors with the aim to make Indian manufacturers globally competitive, attract investment in the areas of core competency and integrate India in the global supply chain. Quality control orders for various products have been issued to check sub-standard imports, said Commerce Minister Piyush Goel in a written statement.
Trade deficit with China widens to Rs 6.67 lakh cr in FY 2022-23
The bilateral trade between India and China from FY 2018-19 to FY 2022-23 has shown a mixed trend. In the past five years, India’s exports rose by 36.6% from $330.07 billion in 2018-19 to $450.95 billion in 2022-23. At the same time, India’s imports rose by 38.8% from $514.07 billion in
