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Trade Deficit Between India and China

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    4th Feb, 2021


  • The details of export/import and trade deficit between India and China during the last three financial years and current financial year are released.

 Analysis of Trade deficit between India and China

  • Trade deficit: Over the years trade deficit has reduced to a great extant
  • Export: A rise has seen in the export of India to China.
  • Import: A substantial decrease was observed in imports to India.
  • Impact of Covid-19 and Sino-India turf: A significant decrease was observed in imports from China during Apr to Nov. Two reasons could be attributed to the fall in import one is Covid-19 pandemic and another is border dispute between both the countries around Ladakh.

Indian Government initiatives

  • The Government of India has made sustained efforts to achieve a more balanced trade with China, including bilateral engagements to address the non-tariff barriers on Indian exports to China.
  • Various protocols have been signed to facilitate export of Indian rice, tobacco, fishmeal /fish oil and chilli meal from India to China.
  • The Government has also taken various measures to extend support to exporters by facilitating Buyers Seller Meets between potential importers of China and the Indian exporters to increase exports.
  • In addition, Indian exporters are encouraged to participate in major trade fairs to showcase Indian products.
  • The Government has taken theinitiative to sensitize the Export Promotion Councils /Trade Bodies to enhance export of Indian goods.
  • The Government has also implemented policies to promote domestic manufacturing through ease of doing business and creating an enabling physical environment for manufacturing, through provision of developed land and infrastructure.

Fiscal Deficit

  • Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
  • A fiscal deficit is created by spending more money than it takes in from taxes and other revenues excluding debt.

Verifying, please be patient.