Amid LAC faceoff, Indo-China trade deficit reduces to $5.48 billion in April-June 2020

On Wednesday, Union Commerce and Industry Minister Piyush Goyal revealed that trade deficit between India and China dipped to 5.48 billion US dollars in April-June this year. As against this, deficit in trade for same period in 2019 was 13.10 billion US dollars. In a reply to an unstarred question by BJP Lok Sabha MP Maj Kotak, Goyal mentioned that Centre had consistently taken steps to balance trade with China by increasing exports and reducing India's dependence on imports from neighbouring country.

Replying to Congress MP Deepak Baij's question, Goyal stated that export of items from China to India such as petroleum products, organic chemicals, plastic raw materials, cotton yarn, bulk mineral and ores, electrical machinery, auto components and cotton raw fell in 2019-20 as compared to 2018-19. On or hand, he ted that major items which exhibited a reduction in India's imports from China from April-July 2020 include accumulators and batteries, man-made yarn and fabric, aluminium and its products, glass and glassware, paper, paper board and products and or plastic items. According to him, Centre has implemented policies to promote domestic manufacturing in line with vision of Atmanirbhar Bharat. 

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Checking China's ecomic influence

faceoff with China at Line of Actual Control led to a demand for drastically altering ecomic relationship with China.  customs duty has been increased on 89 items such as footwear, toys, furniture and pressure vehicles to curb n-essential imports. Moreover, restrictions have been imposed on 13 items in last year which includes items imported from China. As per a tification in June,  import of tyres for bicycles, cars, motorcycles, buses and lorries were restricted. y can be imported only with a license from DGFT.

Furrmore, FDI coming from China is allowed only through government route. aver time taken by DGTR to initiate and complete anti-dumping investigations has come down to 33 and 234 days respectively.  Additionally, Public Procurement (Make in India) Order was revised to ban participation of foreign suppliers where estimated value of purchase is less than Rs.200 crore. Reciprocity Clause was invoked against countries which discriminate and restrict Indian companies to participate in ir procurements. Additionally, Information and Techlogy Ministry has banned 224 Apps of Chinese origin including TikTok, WeChat and PUBG. 

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