India’s exports to China increased by around 34% to $22.9 billion in 2021 from $17.1 billion in 2019, according to Commerce Ministry data.
Imports, on the other hand, increased by 28% to reach USD 87.5 billion in 2021 from USD 68.4 billion in 2019.
According to the data, the trade deficit increased to $64.5 billion last year from $51.2 billion in 2019.
Trade experts said India’s exports to China grew at a faster rate than its imports from China in 2021 compared to the normal year of 2019.
Khalid Khan, vice president of the Federation of Indian Export Organizations, said huge export potential exists for Indian exporters in China.
“Our exporters are doing pretty well in China. We can push our exports further,” Khan said.
The share of imports of raw materials, intermediate goods and capital goods from China increased in 2021 compared to 2019, while imports of consumer goods fell from 14.7% in 2019 to 10, 4% in 2021, said another expert.
Moreover, in 2021, the United States ranked first as India’s merchandise trading partner with a value of $112.3 billion. America was followed by China (110.4 billion USD), the United Arab Emirates (68.4 billion), Saudi Arabia (35.6 billion USD), Switzerland (30.8 billion USD) and Hong Kong ($29.5 billion).
“There is a change in the trade growth pattern in 2021 compared to 2020. In the post-COVID-19 period, India’s merchandise trade with all other major trading partners except Hong Kong and Singapore, recorded higher growth than the growth recorded with China in 2021 compared to 2020,” added an expert.
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