India's trade gap with China rise 13 per cent despite efforts to reduce dependence on imports

[Beijingwalker]

India's trade gap with China rise 13 per cent despite efforts to reduce dependence on imports​

R. Suryamurthy New Delhi
Published 20.11.24, 08:22 AM

Representational image

India’s goods trade deficit with China surged 13 per cent in the first seven months of the fiscal, underlining persistent dependence on Chinese imports despite efforts to diversify supply chains and curtail imports of certain products.

The potential escalation of the US-China trade war could further exacerbate the issue.

As the US imposes higher tariffs on Chinese goods, China may seek alternative markets, including India, to offload its excess production. This could flood Chinese goods into the Indian market, further widening the trade deficit.

The deficit widened to $57.83 billion between April and October compared with $51.12 billion a year earlier, according to government data.

October alone saw a deficit of $8.46 billion, slightly higher than the $8.27 billion reported during the same month in 2023. China retained its position as India’s largest import source, far outpacing Russia and the UAE.

Imports from China reached $65.9 billion during the April-October period, up from $60 billion a year earlier, while exports to China fell to $8.06 billion from $8.89 billion.

The growing gap comes as Chinese goods dominate India’s industrial imports, with their share climbing to 30 per cent from 21 per cent over 15 years.

Electronics, telecom equipment and electric vehicles remain critical sectors heavily reliant on Chinese inputs, including lithium-ion batteries essential for India’s green energy ambitions.

“India’s reliance on China is set to deepen,” said Ajay Srivastava, founder of the Global Trade Research Initiative.

 

[ST1976]

I would recon depreciation of currency to control trade deficit of India...
But free trade with China would be further encouraged as it's finally help Indian industries

 

[drasticmeasure]

It is impossible for India to close trade gap with China. China is too competitive, their industry is backed by their government and their products are high quality. Forget it.

 

[ST1976]

It is impossible for India to close trade gap with China. China is too competitive, their industry is backed by their government and their products are high quality. Forget it.

India invited high trade deficit from China not for free.......

its examined that around 10 to 14 years, its takes to fully copy/cope with those CHinese products by countries like India-Indonesia-Russia etc which they import at present.....

the CHinese products, India imported during first half of this century, India virtually opened new industries on its place by Reverse Engineering type techniques.

and the same help was not found in case of Western-Japanese products in past, India was not able to copy/cope with those products as compared to CHinese once

 

[ST1976]

India's trade gap with China rise 13 per cent despite efforts to reduce dependence on imports​

R. Suryamurthy New Delhi
Published 20.11.24, 08:22 AM

Representational image

India’s goods trade deficit with China surged 13 per cent in the first seven months of the fiscal, underlining persistent dependence on Chinese imports despite efforts to diversify supply chains and curtail imports of certain products.

The potential escalation of the US-China trade war could further exacerbate the issue.

As the US imposes higher tariffs on Chinese goods, China may seek alternative markets, including India, to offload its excess production. This could flood Chinese goods into the Indian market, further widening the trade deficit.

The deficit widened to $57.83 billion between April and October compared with $51.12 billion a year earlier, according to government data.

October alone saw a deficit of $8.46 billion, slightly higher than the $8.27 billion reported during the same month in 2023. China retained its position as India’s largest import source, far outpacing Russia and the UAE.

Imports from China reached $65.9 billion during the April-October period, up from $60 billion a year earlier, while exports to China fell to $8.06 billion from $8.89 billion.

The growing gap comes as Chinese goods dominate India’s industrial imports, with their share climbing to 30 per cent from 21 per cent over 15 years.

Electronics, telecom equipment and electric vehicles remain critical sectors heavily reliant on Chinese inputs, including lithium-ion batteries essential for India’s green energy ambitions.

“India’s reliance on China is set to deepen,” said Ajay Srivastava, founder of the Global Trade Research Initiative.

It is impossible for India to close trade gap with China. China is too competitive, their industry is backed by their government and their products are high quality. Forget it.

along with the post#4, the use of High Trade Deficit of India is to control Indian currency from appreciation which was hard to be managed by having high Foreign Reserve only.....

Chinese imports help India maintain Indian currency level on international platform within reasonable levels also

Exchange Rate US Dollar to Indian Rupee (Currency Calculator) - X-Rates

This Free Currency Exchange Rates Calculator helps you convert US Dollar to Indian Rupee from any amount.

www.x-rates.com

 

[ST1976]

It is impossible for India to close trade gap with China. China is too competitive, their industry is backed by their government and their products are high quality. Forget it.

further, in NICs, we find only India close to, or outperform CHinese industries......

Newly industrialized country - Wikipedia

en.wikipedia.org

as per reports, we find Western firms are more inclined to open branches in India as compared to CHina or other NICs... only India outperform CHina in NICs in this regard.....

here, we also have report that India has at least Outperformed South Africa in NICs. outside OECD economies, only China is ahead of India in terms of High-Tech Industries.

 

[Thinking]

Sigh..this will continue for 5-7 years before trend starts reversing itself..

 

[ST1976]

Sigh..this will continue for 5-7 years before trend starts reversing itself..

Indian perspective is not to have 'smoke' of others.....
its CHina which does this job. Manufacturing industries for others, and the related 'smoke', the India declined to have it since early 90s.......

 

[kambhakt]

We should look at our trade deficit in totality and not with one country.

If the increase from China is for machinery or solar panels, it should not be a problem. If it is for consumables, we need to increase our competitiveness.

 

[ST1976]

We should look at our trade deficit in totality and not with one country.

If the increase from China is for machinery or solar panels, it should not be a problem. If it is for consumables, we need to increase our competitiveness.

we import from China only, mostly, what we can make for ourselves in future by Reverse Engineering type techniques.......
there is no free money in countries like India to help cheap Chinese products

there is a policy for Chinese import, say, where we are sitting in next 5-6 years and what we may contribute in Chinese economy by helping ourselves at the same time.....

we have report that competitiveness of Indian firms are of high level. the Western firms heavily lies on Indian Professionals for running their industries, the 'help' Indian government give to Western firms to face worldwide competition including from China, is something available for Indian firms also.....

the Indian professional work force is too competitive. the Industrialization of USA is what Hindus threw 'boties' to American Tax Payers. the assets of US's/Western firms, is it by their own people? think again.........
the highest Tax Paying people of USA....

List of ethnic groups in the United States by household income - Wikipedia

en.wikipedia.org

.

 

[Indos]

We should look at our trade deficit in totality and not with one country.

If the increase from China is for machinery or solar panels, it should not be a problem. If it is for consumables, we need to increase our competitiveness.

Here

General Profile: India | UNCTAD Data Hub

Overview of key economic statistics. The statistical themes covered are: International trade, economic trends, foreign direct investment, external financial resources, population and labor force, information economy and maritime transport.

unctadstat.unctad.org

 

[Alter_Ego]

Almost all countries have deficit with China. Cant complete with chinese bang for buck prices.

 

[Indos]

Almost all countries have deficit with China. Cant complete with chinese bang for buck prices.

Here the breakdown

Visualizing All of China’s Trade Partners

China trades with more than 200 countries globally. Here's how China's trade partners break down by import and export destinations.

www.visualcapitalist.com

 

[Indos]

Countries with 6 billion USD or more trade surplus with China​

Visualizing All of China’s Trade Partners

China trades with more than 200 countries globally. Here's how China's trade partners break down by import and export destinations.

www.visualcapitalist.com

 

[Alter_Ego]

Countries with 6 billion USD or more trade surplus with China​

View attachment 82289
View attachment 82290
View attachment 82291

Visualizing All of China’s Trade Partners

China trades with more than 200 countries globally. Here's how China's trade partners break down by import and export destinations.

www.visualcapitalist.com

Hmm Ireland?
What are they exporting to China that gives 10+ billion in surplus