India-China trade marks record surge in 2021, export jumps over 34℅: Report

The percentage of raw material, intermediate goods and capital goods imports from China rose in 2021 as compared to 2019.

India & China may be bitting edge enemies on their borders but their Financial stats show a different picture. According to a recent report by the commerce ministry, India’s exports to China have surged about 34 per cent that is by 22.9 billion USD in 2021 as compared to 17.1 billion USD in 2019. However, on the other hand, Imports soared 28 per cent i.e 87.5 billion USD in 2021 from 68.4 billion USD in 2019.

Additionally, according to the report, the trade deficit has inflated to 64.5 billion USD in 2021 as against 51.2 billion USD in 2019. Trade experts have claimed that India’s exports to China have increased at a faster rate than that of its imports from China in 2021 when analyzed with the pre-covid time of 2019.

Talking about this rise, Khalid Khan, vice-president of the Federation of Indian Export Organisations, told there are massive export possibilities for Indian exporters in China.
“Our exporters are doing quite good in China. We can push our exports further,” Khan told.

The percentage of raw material, intermediate goods and capital goods imports from China rose in 2021 as compared to 2019, whereas imports of consumer goods have plunged from 14.7 per cent in 2019 to 10.4 per cent in 2021, another expert explained.

Meanwhile, in 2021, the US has received the favourite position as India’s trade partner with a trade amount of 112.3 billion USD. China got second place (USD 110.4 billion) followed by UAE (68.4 billion), Saudi Arabia (USD 35.6 billion), Switzerland (USD 30.8 billion), and Hong Kong (USD 29.5 billion).

However, an expert described this growth shift saying, “There is a shift in the growth pattern of trade in 2021 with respect to 2020. In the post-COVID-19 period, India’s merchandise trade with all other top trading partners except for Hong Kong and Singapore have registered growth higher than that of the growth registered with China in 2021 over 2020.”

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