India's exports potential to China pegged at USD 95 Bn; five times the current levels
Updated: Jul 21, 2015 04:43:47pm
New Delhi, July 21 (KNN) Amidst the raising debate on finding ways to close the burgeoning trade deficit between India and China, a study finds that there is an untapped potential of increasing Indian exports to China by over five times.
The bilateral trade deficit with China widened from USD 23 billion in 2010 to USD 35 billion in 2013, accounting for 25 per cent of India’s total trade deficit in the year.
A study conducted by group of economists namely Nisha Taneja, Deepika Wadhwa and Samridhi Bimal, and reported in 11th July edition of the EPW, finds that India’s export potential to China is USD 95.5 billion (5.8 times larger than the current export of USD 16.5 billion).
The important items having export potential include mineral fuels, medicaments, diamonds, parts of vehicles, aeroplanes and other aircrafts, and cotton.
The study notes that India’s exports to China have been concentrated heavily in a few low value added products. India needs to diversify its export basket to include items other than primary goods.
In comparison, 80 per cent of India’s imports from China consist of capital and intermediate goods, which are essential for the country’s industrialisation process and therefore should not be curtailed.
The study concludes that instead of curtailing imports from China- which largely constitutes capital goods, the focus should be on enhancing exports.
It highlights that the efforts should be made on removing various barriers related to tariffs, market access, regulatory and other complexities in entering the Chinese market place hurdles in the path of raising Indian exports to China. (KNN Bureau)
The bilateral trade deficit with China widened from USD 23 billion in 2010 to USD 35 billion in 2013, accounting for 25 per cent of India’s total trade deficit in the year.
A study conducted by group of economists namely Nisha Taneja, Deepika Wadhwa and Samridhi Bimal, and reported in 11th July edition of the EPW, finds that India’s export potential to China is USD 95.5 billion (5.8 times larger than the current export of USD 16.5 billion).
The important items having export potential include mineral fuels, medicaments, diamonds, parts of vehicles, aeroplanes and other aircrafts, and cotton.
The study notes that India’s exports to China have been concentrated heavily in a few low value added products. India needs to diversify its export basket to include items other than primary goods.
In comparison, 80 per cent of India’s imports from China consist of capital and intermediate goods, which are essential for the country’s industrialisation process and therefore should not be curtailed.
The study concludes that instead of curtailing imports from China- which largely constitutes capital goods, the focus should be on enhancing exports.
It highlights that the efforts should be made on removing various barriers related to tariffs, market access, regulatory and other complexities in entering the Chinese market place hurdles in the path of raising Indian exports to China. (KNN Bureau)
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