India’s exports to China, which have been showing signs of revival this year after years of slump, registered a 40.69 percent rise year-on-year to reach USD 10.60 billion in the first seven months of 2017.
Fired by exports of zinc, iron ore and steel, total Indian exports to China registered a 38.6 percent increase year-on-year in August this year totalling to USD 1.26 billion, the sharpest increase this year.
However, the trade deficit expanded to USD 44.51 billion in the first seven months despite a surge in Indian exports as imports from China continue to increase.
The India-China bilateral trade increased 18.34 percent year-on-year to reach USD 55.11 billion from January to August this year, according to official data accessed by PTI here.
India’s exports to China increased by 40.69 percent year-on-year to reach USD 10.60 billion during the seven months.
India’s imports from China saw a year-on-year growth of 14.02 percent to reach USD 44.50 billion.
The cause for the surge of Indian exports to China was a result of an exponential increase of 353.99 percent of exports of zinc and related items, 248.19 percent of iron and steel and 100.7 percent increase in ores and slag and 151.17 percent rise in copper.
India was the second largest exporter of diamonds to China totalling to USD 1.63 billion with a market share of 32.97 percent after South Africa.
India was the second largest exporter of salt, sulphur, earth and stone, plastering materials, lime, and cement to China totalling to USD 692 million with 17.39 percent market share after Turkey.
India’s cotton exports, including yarn and woven fabric, to China showed a growth of 6.77 percent to reach USD 844 million.
The country was the third largest exporter of cotton to China after Vietnam and the US accounting for 15.05 percent share in the Chinese market.
India-China bilateral trade increased by 14.93 percent year-on-year in August to reach USD 7.51 billion.
Despite the increase in Indian exports to China, Indian business and trade circles associated with bilateral trade, however, advise caution as it is mostly led by iron ore and steel exports which started declining in 2013 due to a domestic crackdown on mines as well as China scaling down its steel production due to the global economic crisis.
The trade deficit began expanding ever since iron ore exports, the mainstay of Indian exports started declining.
Last year, the trade deficit climbed to USD 52 billion.
India has been pressing China to open up its pharmaceutical and IT software sectors to expand the base of Indian exports.
So far, there has been no major breakthrough in both areas, despite promises by China.