China’s total trade surplus with India ‘surpasses $1 trillion’

[beijingwalker]

China’s total trade surplus with India ‘surpasses $1 trillion’​

Ananth Krishnan
OCTOBER 19, 2022 20:00 IST

India’s imports from China in 2021 alone exceeded exports to its northern neighbour by almost $70 billion​

The favourable trade balance that China has enjoyed with India, since bilateral commerce began to boom in the early 2000s, has cumulatively exceeded $1 trillion, according to estimates.

The trade gap has particularly widened in the past decade. In 2021, annual two-way trade crossed $100 billion for the first time, reaching $125.6 billion, with India’s imports accounting for $97.5 billion, pegging the imbalance at close to $70 billion.

Trade ties began to boom since the early 2000s driven largely by India’s imports of Chinese machinery and other equipment, up from $3 billion in the year 2000 to $42 billion in 2008, the year China became India’s largest trading partner.

“China’s trade with India is lopsided and in this period China had a favorable balance of trade that has crossed $1.2 trillion,” said Srikanth Kondapalli,who is Professor in Chinese Studies and Dean of the School of International Studies at Jawarharlal Nehru University. “That is, in pure statistics, Chinese businesses earned that much money [from India].”

While some economists say India’s trade imbalance with China should not be viewed in isolation – for instance, pharmaceuticals that India exports to the world require ingredients that are imported from China – Mr. Kondapalli said an imbalance over an extended period of time posed problems.

Moreover, Chinese commitments to India to import substantially more Indian goods, particularly pharmaceuticals, have not materialised, although Chinese imports of Indian seafood are one area that has recently shown robust growth.

“These surpluses are consistent, and not addressed over a period of time this leads to the problem of a current account deficit for India,” he said.

The imbalance in 2022 is set to surpass even last year’s record figure. In the six months ended June, India’s imports from China surged 34,5% to reach a record $57.51 billion, according to China’s trade figures released in July. India’s exports to China, however, shrank by 35% and accounted for only $9.57 billion of the $67.08 billion two-way trade.

China’s third-quarter trade data, which was due to be released this week but has been delayed because of the ongoing Communist Party Congress, is expected to reflect continued growth in Indian imports. India’s biggest imports last year were electrical and mechanical machinery, chemicals used in industrial production, active pharmaceutical ingredients and auto components. India also imported medical supplies during the pandemic.

https://www.thehindu.com/news/international/chinas-total-trade-surplus-with-india-surpasses-1-trillion/article66031147.ece

 

[beijingwalker]

India is now ever more dependent on Chinese imports despite seeking self-reliance​

China's overall trade deficit with India has now exceeded $1 trillion.

By Niharika Sharma
OCTOBER 20, 2022

For the past few years, prime minister Narendra Modi’s government has been pushing businesses to “make in India” and lessen his country’s reliance on China-made goods.
The idea is to reduce India’s trade deficit with its neighbour. A trade deficit happens when a country’s imports exceed its exports.

Yet, after spending billions of rupees to build such self-reliance, China’s trade surplus with India has only exceeded $1 trillion, The Hindu reported yesterday (Oct. 20).

Bilateral trade between India and China​

Trade ties between India and China began to grow in the early 2000s, driven by imports to India from China.

A large portion of these imports, according to the Indian government, include footwear, iron and steel, copper, nuclear reactors, animal and vegetable fats, mineral fuels, and inorganic chemicals among others.

In the past five years alone, imports from China have increased by nearly 30%, the Indian informed parliament in July (pdf).

“In 2021, annual two-way trade crossed $100 billion for the first time, reaching $125.6 billion, with India’s imports accounting for $97.5 billion, pegging the imbalance at close to $70 billion,” according to The Hindu.

Calls for Boycott of Chinese products​

The increase in Chinese imports has come amid growing calls in India to boycott Chinese products.

Indian customers’ attitude towards Chinese products turned so hostile by the end of 2020 that some Chinese firms switched the “Made in China” label on their products to “Made in PRC” where PRC stands for the People’s Republic of China. This made the products’ country of origin a little less clear.

Tensions between the two nations increased when India banned a host of Chinese apps and the Modi government reportedly advised all states to avoid signing any deals with China.

None of these moves has apparently helped India. The country is now dependent on China more than it ever was.

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[beijingwalker]

Share of engineering exports shrinks, exports to China fall 65% in September​

Updated: 21 Oct 2022, 08:09 PM IST

NEW DELHI : Led by sharp slowdown in demand in key economies, share of engineering exports in total shipments shrunk in September compared to last year with shipments to China and the European Union reporting a steep decline.

Engineering exports, which account for about a quarter of total outbound shipments declined by 11% in September, dragged down primarily by iron and steel.

Share of engineering goods exports in total merchandise exports declined to 23.69% in September 2022 from 27.85% in the same month last year, according to the engineering export promotion council (EEPC).

"This decline can be explained by the falling steel exports. In September alone exports of iron and steel came down by more than 60% and in cumulative terms the drop was more than 30%," said EEPC India chairman Arun Kumar G Garodia. The drop in steel exports has impacted India’s potential in various key markets including Europe, North East Asia, Africa, etc. We have requested the government to look into the issue," said Garodia.

He noted that this decline had been a direct result of the 15% export duty on iron and steel products applicable since 21 May.

While engineering exports to the European Union (EU) countries registered a 6.3 % year-on-year decline, shipments to China slumped 64.5% during this period. Exports to China in September plunged to US$ 203.61 million from US$ 572.96 million in the same month last year.

Dragged down primarily by iron and steel, India's engineering goods exports decline pose a challenge to achieving US$ 127 billion sectoral export target set by the government for the current financial year 2022-23, added Garodia.

Among the 25 key markets for Indian engineering goods, exports to 15 countries declined in September 2022.

The US remained top market for Indian engineering goods exports in September recording positive growth. In September, engineering goods exports to the US increased 9% year-on-year to US$ 1.51 billion.

Engineering goods exports to the EU fell 6.3% year-on-year in US$ 1.61 billion. Germany, Italy, Belgium and Spain were among countries in Europe which registered a decline in imports of Indian engineering goods during September, EEPC said in a release on Friday. At US$ 217.89 million, engineering exports to the UK declined 37.9% year-on-year in September.

Excluding the export of iron and steel, engineering exports recorded 4.94% year-on-year growth in September 2022 and 12.37% growth on a cumulative basis during April-September 2022-23.

Cumulative decline in iron and steel exports for the first half of 2022-23 was 36.8% year-on-year.

As many as 20 out of 34 engineering panels witnessed positive year-on-year growth in exports during September 2022 vis-a-vis the same month last fiscal, EEPC said in a release. Major decline was witnessed in the metal segment and railway transport equipment and parts, it added.

On a cumulative basis also, 26 out of 34 engineering panels recorded expansion during April-September 2022-23 over the same period last fiscal.

In terms of region, maximum growth in exports was witnessed in North America followed by Latin America and Oceania in cumulative terms.

In the first half of fiscal 2022-23, engineering exports achieved 43.42 per cent of the US$ 127 billion target set by the Government for the entire fiscal

Share of engineering exports shrinks, exports to China fall 65% in September

The share of engineering exports in total shipments decreased in September compared to last year, driven by a sharp slowdown in demand in important economies

www.livemint.com

 

[beijingwalker]

India's trade deficit with China climbs to over $75 billion​

China's exports to India climbed to USD 89.66 billion, registering an increase of 31 per cent.​

• Oct 26, 2022,
• Updated Oct 26, 2022, 9:25 PM IS

India and China bilateral trade continued to boom, crossing USD 100 billion for the second year in the first nine months of 2022 while India's trade deficit climbed to over USD 75 billion, according to trade data released by Chinese customs.

The total bilateral trade, amidst the military standoff in eastern Ladakh, went up to USD 103.63 billion, registering a 14.6 per cent increase compared to last year during the same period. China's exports to India climbed to USD 89.66 billion, registering an increase of 31 per cent, data released by China’s General Administration of Customs (GAC) said.

However, India’s exports in the past nine months stood at USD 13.97 billion, registering a decline of 36.4 per cent. As a result, the total trade deficit went up to over USD 75.69 billion.

Last year, the India-China bilateral trade hit a record high of over USD 125 billion crossing the USD 100 billion mark in a year when the relations touched a new low due to the standoff by the militaries in eastern Ladakh. Last year, China's exports to India went up by 46.2 per cent to USD 97.52 billion while India’s exports to China grew by 34.2 per cent to USD 28.14 billion. The trade deficit for India stood at USD 69.38 billion in 2021.

India's trade deficit with China climbs to over $75 billion

China's exports to India climbed to USD 89.66 billion, registering an increase of 31 per cent.

www.businesstoday.in