Indian Exports to China Rises Sharply in First Four Months
Indian exports to China rose sharply in the first four months of this year registering a 20 percent increase to USD 5.57 billion, though the trade deficit continued to persist.
Image for representation only.
Beijing: After years of decline, Indian exports to China rose sharply in the first four months of this year registering a 20 percent increase to USD 5.57 billion, though the trade deficit continued to persist.
Indian exports received a major boost mainly due to China increasing the steel consumption by importing big quantity of iron ore as well as gems and diamonds besides cotton materials.
The India-China trade grew by six percent to USD 26.02 billion from January to April this year, according to the data of China's customs accessed by PTI in Beijing.
As per the data, the Indian exports have gone up to USD 5.57 billion, registering a 20 percent increase. China's exports to India too amounted to USD 20.45 billion, a 14 percent raise.
The trade deficit problem for India, however, continued. The trade deficit in the first four months amounted to USD 14.88 billion in favour of China.
In 2016, the deficit aggregated to around USD 52 billion in a little over USD 70 billion total bilateral trade becoming a thorny issue between the two countries.
But the spurt in Indian exports to China this year showed promise of recovery, the first since iron ore exports started declining in 2013 due domestic crackdown on mines as well as China scaling down its steel production due to global economic crisis.
The trade deficit began expanding ever since the iron ore exports, the main stay of Indian exports started declining. The iron ore exports from India to China in the first four months totalled to USD 1.04 billion jumped by about 45 per cent. Also, Indian exports of iron and steel rose by USD 218 million almost 300 percent.
Indian diamond, gems and precious stones exports also contributed to the rise.
In the first quarter this year, Indian exports of diamonds and gems and stones amounted to USD 558 million. India had 33.8 percent market.
Last year Indias exports of diamonds, stones and gems to China grew by 28.48 percent to touch USD 2.48 billion with India emerging as top two exporters in the burgeoning Chinese market after South Africa.
Officials say there is a huge scope for Indian exports in this field as China's total volume of imports in 2016 was USD 15.816 billion. In 2015 China has imported USD 17.974 billion worth of diamond and precious stones.
Indian exports of cotton and yarn in the first four months rose to USD 600 million a 40 percent increase.
Chinese exports to India also rose by 14 percent during this period and the bilateral trade grew by six percent.
Indian business and trade circles associated with the bilateral trade, however, advised caution saying that base of Indian exports continued to be small and it is to be seen whether the increase is sustainable in the long run.
But at the same there was hope of major increase as China has announced liberalisation of pharmaceutical imports.
India has been pressing China to open up its pharmaceutical and IT software sectors to expand the base of Indian exports. So far, no major breakthrough have been made in both the areas, despite promises by China.
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