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India’s trade with China crosses $125 billion, imports near $100 billion

UPDATED: JANUARY 15, 2022 18:20 IST
Data show continued demand for a range of Chinese goods, particularly machinery


India’s trade with China in 2021 crossed $125 billion with imports from China nearing a record $100 billion, underlining continued demand for a range of Chinese goods, particularly machinery.

In the past 12 months, data from China’s General Administration of Customs released on January 14 showed, the value of goods imported by India from China exceeded the total bilateral trade in 2019. Trade fell from $92.8 billion in 2019 to $87.6 billion in 2020 on account of the pandemic.

Trade has boomed in 2021 thanks to a recovery in demand as well as rising imports of new categories of goods such as medical supplies. Bilateral trade reached $125.6 billion in 2021, with India’s imports from China accounting for $97.5 billion.

Imports were up by 30% from 2019 while India’s exports to China, amounting to $28.1 billion, were up by as much as 56% from two years ago. The trade deficit last year reached $69.4 billion, up by 22% from the pre-pandemic figure in 2019.

While a break-up of imports and exports was not immediately available, India’s biggest exports to China in recent years were iron ore, cotton and other raw material-based commodities, which have seen a recovery in demand in China last year, while India has imported large quantities of electrical and mechanical machinery, active pharmaceutical ingredients (APIs), auto components and, over the past two years, a range of medical supplies from oxygen concentrators to PPEs.

The 43% year-on-year growth in bilateral trade with India was among the highest among China’s major trading partners. Trade figures with China’s top three trading partners showed growth of 28.1% with ASEAN (to $878.2 billion), 27.5% with the European Union (to $828.1 billion), and 28.7% with the United States, to $755.6 billion.
 

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US surpasses China as India's biggest trading partner in FY22 at $119.42 billion​

Exports to China marginally increased to $21.25 billion last fiscal year from $21.18 billion in 2020-21. The data showed that China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner. In 2021-22, the UAE with $72.9 billion, was the third largest trading partner of India.​

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Updated May 29, 2022 | 10:52 AM IST
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US surpasses China as India's biggest trading partner in FY22 at $119.42 billion

New Delhi: The US surpassed China to become India's top trading partner in 2021-22, reflecting strengthening economic ties between the two countries. According to the data of the commerce ministry, in 2021-22, the bilateral trade between the US and India stood at $119.42 billion as against $80.51 billion in 2020-21.

Exports to the US increased to $76.11 billion in 2021-22 from $51.62 billion in previous fiscal year, while imports rose to $43.31 billion as compared to about $29 billion in 2020-21.

During 2021-22, India's two-way commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed.

Exports to China marginally increased to $21.25 billion last fiscal year from $21.18 billion in 2020-21, while imports jumped to $94.16 billion from about $65.21 billion in 2020-21. Trade gap rose to $72.91 billion in 2021-22 from $44 billion in previous fiscal year.

Trade experts believe that the trend of increasing bilateral trade with the US will continue in the coming years also as New Delhi and Washington are engaged in further strengthening the economic ties.

Federation of Indian Export Organisations Vice President Khalid Khan said India is emerging as a trusted trading partner and global firms are reducing their dependence only on China for their supplies and are diversifying business into other countries like India.

"In the coming years, the bilateral trade between India and the US will continue to grow. India has joined a US-led initiative to set up an Indo-Pacific Economic Framework (IPEF) and this move would help boost economic ties further," Khan said.

Rakesh Mohan Joshi, Director of the Indian Institute of Plantation Management (IIPM), Bangalore, too said that India is home to 1.39 billion people with the world's third largest consumer market and the fastest growing market economy with unparalleled demographic dividend provides enormous opportunities for the US and Indian firms for technology transfer, manufacturing, trade and investment.

"Major export items from India to the US include petroleum polished diamonds, pharmaceutical products, jewellery, light oils and petroleum, frozen shrimp, made ups etc. whereas major imports from the US include petroleum, rough diamonds, liquified natural gas, gold, coal, waste and scrap, almonds etc," Joshi said.

America is one of the few countries with which India has a trade surplus. In 2021-22, India had a trade surplus of $32.8 billion with the US.

The data showed that China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner.

In 2021-22, the UAE with $72.9 billion, was the third largest trading partner of India. It was followed by Saudi Arabia ($42,85 billion), Iraq ($34.33 billion) and Singapore ($30 billion).
 
View attachment 849439

@jamahir a trivia for you - let me know if you can guess that person!

Well, I don't understand tax systems because I consider them extortions but if I had to guess the investor being an Indian is it the dear owner of Mundra port where where a total of 2,988.21 kg of heroin, worth over Rs 20,000 crore, was seized on September 13 2021 which is reported to be one of the largest ever seizures across the world but dear owner not questioned by NCB even once unlike Aryan who was arrested in Bombay the next month and kept in jail for 22 days for not keeping even the permissible amount of a narcotics substance ?
 

India’s external debt rose $47.1 bn to $620.7 bn in FY22​


India’s external debt rose to $620.7 billion at end-March 2022, recording an increase of $47.1 billion over the year earlier period, as per Reserve Bank of India (RBI) data.

The external debt to GDP ratio declined to 19.9% at end-March 2022 from 21.2% a year earlier.

Valuation gains on account of the appreciation of the U.S. dollar vis-à-vis Indian rupee and major currencies such as Yen, SDR2, and Euro was estimated at $11.7 billion. Excluding the valuation effect, external debt would have increased by $58.8 billion.

India’s long-term debt (with original maturity of above one year) rose to $499.1 billion, recording an increase of $26.5 billion over its level at end-March 2021, RBI data showed.

U.S. dollar-denominated debt remained the largest component of India’s external debt, with a share of 53.2%.

 
In order to avoid paying taxes in India, Chinese mobile manufacturer firm Vivo India "remitted" about 50% of its turnover, which is ₹62,476 crore, mainly to China.

 

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