India’s trade deficit with China rises to $53 billion in FY16

“Increasing trade deficit with China can be attributed primarily to the fact that Chinese exports to India rely strongly on manufactured items,” said Commerce Minister Nirmala Sitharaman.

November 28, 2016 03:35 pm | Updated 03:35 pm IST - New Delhi

Commerce and Industry Minister Nirmala Sitharaman speaks in the Lok Sabha during the winter session of Parliament in New Delhi on Monday.

Commerce and Industry Minister Nirmala Sitharaman speaks in the Lok Sabha during the winter session of Parliament in New Delhi on Monday.

India’s trade deficit with China increased to $52.69 billion in 2015-16 from $48.48 billion in the previous financial year, Parliament was informed on Monday.

During the April-September period of 2016-17, the deficit is at $25.22 billion, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

“Increasing trade deficit with China can be attributed primarily to the fact that Chinese exports to India rely strongly on manufactured items to meet the demand of fast expanding sectors like telecom and power,” she said.

India is negotiating the Regional Comprehensive Economic Partnership (RCEP) trade agreement keeping in view “its offensive export interests” as well as sensitivities with respect to all participating countries including China, she said.

She added that efforts are being made to increase overall exports by diversifying the trade basket with emphasis on manufactured goods, services, resolution of market access issues and other non-tariff barriers.

Further, the Minister said that as India and China are WTO members, any restrictions imposed on trade needs to be WTO compliant.

No blanket ban can be imposed on China or any other member country under the WTO framework, she added.

Replying to a separate question, she said India’s import of bulk drugs from China stood at $1.63 billion in 2015-16, which constitutes 64 per cent of India’s total bulk drug imports. Overall, India had imported such drugs worth $2.5 billion last fiscal.

“Efforts are being made for revival of (Active Pharmaceutical Ingredient) API industry to lessen dependency on import of key starting materials, intermediates and bulk drugs including from China,” the Minister said.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.