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Sino-India trade imbalance growing
The Financial Express - August 14, 2007
BEIJING, Aug 13 (PTI): Despite the India-China bilateral trade growing at nearly 50 per cent this year, the surging trade deficit is all set to top the record figure of USD 4.11 billion in 2006.
The growing trade imbalance in India-China bilateral trade has caused concern among Indian officials who are highlighting the need for the Indian industry to diversify the country's trade basket with the Communist trading giant, whose total foreign trade has touched a record USD 1.17 trillion, up 24.4 per cent, in the first seven months of 2007.
India-China bilateral trade in January-June zoomed to USD 17.20 billion, achieving an impressive growth of 47.97 per cent over the same period last year, latest Chinese customs figures said.
If the current momentum of USD 2 billion of bilateral trade per month continues, the targeted trade figure of USD 20 billion by 2008 will be achieved a year earlier than expected.
Indian exports to China touched USD 6.9 billion during January-June, up 29.29 per cent over the corresponding period in 2006.
At the same time, Chinese exports to India soared by an impressive 64.07 per cent to touch USD 10.24 billion during the first six months of the year compared to the same period in 2006.
India suffered a trade deficit of USD 3.34 billion during the first six months, compared to USD 1.09 billion in the reach a new record in 2007.
In 2006, India's trade deficit with China amounted to a record USD 4.11 billion compared to USD 843 million of trade surplus the country enjoyed in 2005.
"We are greatly heartened by the positive momentum in our bilateral trade. Yet, both countries need to examine its various parameters closely, particularly the narrow composition of the trade basket and the insufficient use of each other's comparative advantages," sources told the news agency here.
"For sustainable high volumes of bilateral trade, diversification of the trade basket is not only important but imperative," they said.
During his visit to China in April this year, Commerce and Industry Minister Kamal Nath had raised the issue of the growing trade imbalance with his Chinese counterpart, Bo Xilai.
India-China trade ties have witnessed a qualitative change in recent years and it has the potential of growing even faster. "For this we need to work on diversifying the India-China trade basket and facilitating greater interaction and information flow between the commercial sectors of both our countries," industry sources said.
In 1995, India-China trade was just over USD one billion. Less than a decade later in 2004 trade crossed the USD 10 billion mark to record 13.6 billion. In 2005, bilateral trade stood at USD 18.7 billion and in 2006, it touched USD 25.05 billion, registering a growth of 33.87 per cent.
http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=7751
The Financial Express - August 14, 2007
BEIJING, Aug 13 (PTI): Despite the India-China bilateral trade growing at nearly 50 per cent this year, the surging trade deficit is all set to top the record figure of USD 4.11 billion in 2006.
The growing trade imbalance in India-China bilateral trade has caused concern among Indian officials who are highlighting the need for the Indian industry to diversify the country's trade basket with the Communist trading giant, whose total foreign trade has touched a record USD 1.17 trillion, up 24.4 per cent, in the first seven months of 2007.
India-China bilateral trade in January-June zoomed to USD 17.20 billion, achieving an impressive growth of 47.97 per cent over the same period last year, latest Chinese customs figures said.
If the current momentum of USD 2 billion of bilateral trade per month continues, the targeted trade figure of USD 20 billion by 2008 will be achieved a year earlier than expected.
Indian exports to China touched USD 6.9 billion during January-June, up 29.29 per cent over the corresponding period in 2006.
At the same time, Chinese exports to India soared by an impressive 64.07 per cent to touch USD 10.24 billion during the first six months of the year compared to the same period in 2006.
India suffered a trade deficit of USD 3.34 billion during the first six months, compared to USD 1.09 billion in the reach a new record in 2007.
In 2006, India's trade deficit with China amounted to a record USD 4.11 billion compared to USD 843 million of trade surplus the country enjoyed in 2005.
"We are greatly heartened by the positive momentum in our bilateral trade. Yet, both countries need to examine its various parameters closely, particularly the narrow composition of the trade basket and the insufficient use of each other's comparative advantages," sources told the news agency here.
"For sustainable high volumes of bilateral trade, diversification of the trade basket is not only important but imperative," they said.
During his visit to China in April this year, Commerce and Industry Minister Kamal Nath had raised the issue of the growing trade imbalance with his Chinese counterpart, Bo Xilai.
India-China trade ties have witnessed a qualitative change in recent years and it has the potential of growing even faster. "For this we need to work on diversifying the India-China trade basket and facilitating greater interaction and information flow between the commercial sectors of both our countries," industry sources said.
In 1995, India-China trade was just over USD one billion. Less than a decade later in 2004 trade crossed the USD 10 billion mark to record 13.6 billion. In 2005, bilateral trade stood at USD 18.7 billion and in 2006, it touched USD 25.05 billion, registering a growth of 33.87 per cent.
http://www.thefinancialexpress-bd.com/search_index.php?page=detail_news&news_id=7751
