After many years of continuous fall, in the first four months of 2017 Indian exports to China saw a sharp rise of 20%. Even though the trade deficit continued Exports from India to China reached $5.57 billion.
As steel consumption in the neighboring country has increased so there has been seen an increase in the exports from India to China. China also bought a large quantity of iron ore from India besides importing gems, diamonds and cotton. From January to April in 2017 Trade between India and China increased by 6% and reached $26.02 billion, made by a data from China’s customs. The Indian exports have reached to $5.57 billion with a rise of 20% as per the data. With a 14% increase, India’s imports from China also reached $20.45 billion.
In between January-April 2017 tilting on China’s side the trade deficit of India continued and reached $14.88 billion. Last year this deficit was near $52 billion and between the two countries, the total trade was over $70 billion.
In 2013 after they started falling, the increase in Indian export to China has shown first positive signs due to economic slowdown around the globe. Since 2013 due to a fallen demand, the iron exports of India to China had decreased.
In January- April 2017 Indian iron ore exports to China reached $1.04 billion and a rise of45%. With a rise of about 300%, the Indian exports of iron and steel increased by $218 million.
In the first quarter of 2017 from India, the shipment of diamond, gems and precious stones amounted to $558 million. In 2016, with a rise of 28.48%, Indian diamonds, stones and gems shipments to China reached $2.48 billion. China has imported a total of $15.816 billion diamond and gems in 2016 and $17.974 billion in 2015. And it shows the scope which India has for exporting.
In January-April 2017, the exports of cotton and yarn from India were at $600 million with a 40% rise. As Indian exports are less and have to still show sustainability, the experts still advise a word of caution in the trade with China.
Now for opening it’s IT and Pharma sector India is also pushing China but there is no progress till now even with assurances from China.