Published 19:14 IST, February 23rd 2021
India-China trade down by 5.64% in 2020; imports slashed by 10%, exports at all-time high
India significantly slashed its imports from China in 2020, cutting it down by 10.87% at $66.78 billion compared to $74.92 billion in 2019.
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In the aftermath of the LAC stand-off between India and China, bilateral trade between the two nations decreased by 5.64% Y-o-Y and stood at $87.65 billion in 2020, as per a report. This, compared to the $92.89 billion bilateral trade business between the two in 2019.
India also significantly slashed its imports from China, cutting it down by 10.87% at $66.78 billion compared to $74.92 billion in 2019. On the other hand, Indian exports to China increased by 16.15% from $17.896 billion to reach $20.87 billion in 2020, at an all-time high. Accordingly, trade deficit with China declined by 19.39% from $56.95 billion in 2019 to $45.91 billion.
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India 4th largest exporter of iron ore to China
Among the top 15 Indian exports (at HS-2 level), a steep rise was witnessed in 2020 in ores (75.35%), iron and steel (336%), aluminum (2023%) and copper. Exports of iron and steel amounted to $2.53 billion, marking a Y-o-Y increase of 336.44% and making India the fourth largest exporter of iron and steel to China.
Exports of aluminum and its articles registered a massive increase of 2023.12% to reach $640 million, making India the fifth largest exporter in this category to China in 2020 after ranking 21st in 2019.
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Among the key agricultural commodities which India had focused on in 2019, including sugar, rice, oil, etc., total exports saw an increase of 58.99% from $125.3 million in 2019 to $199.14 million in 2020. The major contributors to this increase were cane sugar (387.5%), Soyabean oil (3050%), rice (184%) and vegetables fats and oils (415%). Exports of mangoes and fish oil, however, declined dramatically to nil along with tea which declined by 6.94%, and fresh grapes by 24.1%.
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Decline in imports from China
Among the top 15 Chinese exports (at HS-2 level) to India, 2020 saw a decline in electrical machinery and equipment (-4.53%), boilers, machinery and mechanical appliances (-7.68%), plastics and related articles (-21.9%), articles of iron and steel (-22.38%), furniture (-14.73%), fertilizers (-15.15%), vehicle parts and accessories, including rolling stock (-7.62%), toys and sports equipment (-4.44%), iron and steel (-32.27%), glass and glassware(-21.41%), inorganic chemicals (-15.12%), miscellaneous articles of base metals (_23.88%) and ceramic products (-31.25%).
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19:14 IST, February 23rd 2021