New Delhi, Aug 2 (KNN) The trade deficit between India and China has been growing YoY owing to the increasing demand of products such as telecom instruments, computer hardware, electronic components, product goods etc.

India’s trade deficit with China has surged to USD 52.68 billion in the year 2015-16, which was USD 48.48 billion in   FY 2014-15 and USD 36.21 billion in FY 2013-14.

The rate of growth of imports from China was more in 2013-14 to 2014-15, whereas it was lower in the year 2014-15 to 2015-16.

In FY 2013-14, the imports stood at USD 51.03 billion, which increased to USD 60.41 billion in FY 2014-15 and to USD 60.41 in FY 2015-16.

The exports consistently fell from the year 2013 to 2016. India’s export to China was USD 14.82 billion in FY 2013-14 which fell to USD 11.93 billion in FY 2014-15 and further tumbled to USD 9.02 billion in FY 2015-16.

 Minister of State (Independent Charge) in the Ministry of Commerce & Industry Nirmala Sitharaman said, “Increasing trade deficit with China can be attributed to the relative demand for imports in India and China for each other’s goods.”

The major imports from China are products such as telecom instruments, computer hardware and peripherals, fertilizers, electronic components/instruments, project goods, organic chemicals and drug intermediates, consumer electronics, electrical machinery and equipment, iron and steel etc. 

India’s export to China comprises of ores, slag and ash, iron and steel, tin and articles thereof, tools implements of base metal; raw hides and skins  and leather; plastics, organic chemicals and cotton etc.

Sitharaman said efforts are continuously made to increase overall exports by diversifying  the trade basket with emphasis on manufactured goods, services,  resolution of   market access issues and  other non-tariff barriers. (KNN Bureau)