India’s trade deficit with China narrows to $48.66 bn in FY20

NEW DELHI: India’s trade deficit with China fell to $48.66 billion in 2019-20 on account of decline in imports from the neighbouring country, according to government data. Exports to China in the last financial year stood at $65.26 billion, while imports aggregated at $16.6 billion, the data showed. The trade deficit between the countries was at $53.56 billion in 2018-19 and $63 billion in 2017-18.

The main imports from

China include clocks and watches, musical instruments, toys, sports goods, furniture, mattresses, plastics, electrical machinery, electronic equipment, chemicals, iron and steel items, fertilisers, mineral fuel and metals.

New Delhi has time and again raised concerns over the widening trade deficit with China. The government is taking steps such as framing technical regulations and quality norms for several products to cut dependence on China for imports. As many as 371 products have been identified for technical regulations. Similarly, foreign direct investment (FDI) from China into India too has dipped to $163.78 million in 2019-20 from $229 million in the previous fiscal, according to the data.