India records $53 bn trade gap with China in FY 2015-16

India records $53 bn trade gap with China in FY 2015-16

02/08/2016 14:56

India’s trade shortfall with its neighbour China expanded to USD 52.68 billion in FY 2015-16 attributed to higher demand for Chinese goods by Asia’s third biggest economy.

In FY 2014-15, India had recorded a trade deficit of USD 48.48 billion with China, the world’s second biggest economy, media reports showed.

“Increasing trade deficit with China can be attributed to the relative demand for imports in India and China for each other’s goods,” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha on Monday, the PTI reported.

The Commerce and Industry Minister said that the Modi government is stepping up efforts to bolster overall exports by diversification of the trade basket, with strong focus on manufactured goods, services, resolution of issues related to market access and other non-tariff barriers.

India’s major imports from China include telecom instruments, computer hardware and peripherals, fertiliser, electronic component, project goods, chemicals and drug intermediaries, while China purchases ore, slag or ash, iron and steel, tin, raw hides, leather, plastics and cotton from India.

Bilateral trade between the two Asian giants fell to USD 70.73 billion in the fiscal year which ended on March 31, 2016, down from USD 72.34 billion in FY 2014-15.

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