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What is the News?
The bilateral trade between India and China has crossed 125 billion USD in 2021.
What is the Data on Bilateral Trade between India and China?
The two-way trade between India and China in 2021 stood at 125.66 billion USD, up 43.3% from 2020.
India was China’s 15th largest trade partner in 2021.
In 2021, China’s exports to India were 97.52 billion USD up by 46.2% while China imported 28.14 billion USD worth of goods from India up by 34.2%.
India’s biggest exports to China were iron ore, cotton, and other raw material-based commodities.
India imports from China include large quantities of electrical and mechanical machinery, active pharmaceutical ingredients (APIs), auto components, and over the past two years, a range of medical supplies from oxygen concentrators to PPEs.
Trade deficit between the two countries remained in favour of China – at $69 billion.
Why the trade deficit has widened?
The widening of India’s trade deficit with China can be attributed to two factors: 1) narrow basket of commodities mostly primary for exporting to China and 2) Lack of market access for most of India’s agricultural products and the sectors where India is competitive such as pharmaceuticals and IT.
What is the Data on Bilateral Trade between the US and China?
China and the US trade has increased by 28.7% and amounted to $755.6 billion in 2021.
Currently, the US is China’s third-largest trade partner following ASEAN and the European Union.
Source: This post is based on the article ‘Bilateral trade between India, China crosses 125 billion USD in 2021’ published in AIR on 17th January 2022.