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FY22 India's trade deficit with China swells to $72.9 billion, 44.3% more than the previous fiscal year
By Kirtika Suneja
May 30, 2022, 01:05 AM IST
India's trade deficit with Chinawidened to $72.9 billion in FY22 as imports surged to $94.16 billion, 44.3% more than the previous fiscal year as well as the pre-pandemic year of FY20, official data showed. India imported $29.89 billion of electrical machinery, equipment and sound recorders, $12.49 billion of organic chemicals, and $19.83 billion of boilers and mechanical appliances in the last fiscal year, with these imports up a total 40% on-year.
In FY21, India's imports from China amounted to $65.21 billion, while exports in both FY21 and FY22 remained stagnant at about $25.2 billion, according to commerce and industry ministry data. Imports in the pre-pandemic year of FY20 stood at $65.26 billion.
"Higher commodity prices and pent-up demand post the restrictions during Covid pushed up the demand for both consumer and industrial goods which led to a rise in imports," said a chief economist with a bank who didn't want to be named. Shipments from China comprised 15.38% of India's total imports of $611.89 billion in FY22.
India is in the process of identifying impediments to its exports to China in order to narrow the trade deficit, said people with knowledge of the matter. "The issues such as non-tariff barriers will be taken up with China," said an official.
The pandemic has swelled India's trade deficit with China though a gradual improvement had been witnessed just before the pandemic years, according to ratings agency.
India's dependence on Chinese imports has increased for computer hardware, electronic components and chemicals. It supplies more than half the county's demand.
"Lower domestic demand due to restrictions on mobility possibly contributed to decline in India's merchandise exports to China in January-March 2022 by 30.3% on-year," Crisil said.
In FY21, when India's economy contracted 6.6% and overall imports shrank 17%, imports from China held steady at $65.2 billion, reflecting their stickiness and the surge in demand for electronic goods. These were the key imports from China during the pandemic.
economictimes.indiatimes.com
By Kirtika Suneja
May 30, 2022, 01:05 AM IST
India's trade deficit with Chinawidened to $72.9 billion in FY22 as imports surged to $94.16 billion, 44.3% more than the previous fiscal year as well as the pre-pandemic year of FY20, official data showed. India imported $29.89 billion of electrical machinery, equipment and sound recorders, $12.49 billion of organic chemicals, and $19.83 billion of boilers and mechanical appliances in the last fiscal year, with these imports up a total 40% on-year.
In FY21, India's imports from China amounted to $65.21 billion, while exports in both FY21 and FY22 remained stagnant at about $25.2 billion, according to commerce and industry ministry data. Imports in the pre-pandemic year of FY20 stood at $65.26 billion.
"Higher commodity prices and pent-up demand post the restrictions during Covid pushed up the demand for both consumer and industrial goods which led to a rise in imports," said a chief economist with a bank who didn't want to be named. Shipments from China comprised 15.38% of India's total imports of $611.89 billion in FY22.
India is in the process of identifying impediments to its exports to China in order to narrow the trade deficit, said people with knowledge of the matter. "The issues such as non-tariff barriers will be taken up with China," said an official.
The pandemic has swelled India's trade deficit with China though a gradual improvement had been witnessed just before the pandemic years, according to ratings agency.
India's dependence on Chinese imports has increased for computer hardware, electronic components and chemicals. It supplies more than half the county's demand.
"Lower domestic demand due to restrictions on mobility possibly contributed to decline in India's merchandise exports to China in January-March 2022 by 30.3% on-year," Crisil said.
In FY21, when India's economy contracted 6.6% and overall imports shrank 17%, imports from China held steady at $65.2 billion, reflecting their stickiness and the surge in demand for electronic goods. These were the key imports from China during the pandemic.
FY22 trade gap with China swells to $72.9 billion
In FY21, when India's economy contracted 6.6% and overall imports shrank 17%, imports from China held steady at $65.2 billion, reflecting their stickiness and the surge in demand for electronic goods. These were the key imports from China during the pandemic.
