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Shrunk trade with China
Why is it in News?
- According to China’s Genral administration od customs, India’s trade with China in 2020 is declined with deficit at 5 year low.
Details:
- Bilateral trade declined to $87.6 billion.
- India’s imports from China has declined by 10.8%.
- This import of $66.7 billion is lowest since 2016.
- India’s exports to China has increased first time above $20 billion (20.86).
- Deficit has shrunk to $45.8 billion, lowest level since 2015.
- India’s biggest import in 2019 was electrical machinery and equipment, worth $20.17 billion.
- Other major imports in 2019 were organic chemicals ($8.39 billion) and fertilisers ($1.67 billion), while India’s top exports were iron ore, organic chemicals, cotton and unfinished diamonds.
- The past 12 months saw a surge in demand for iron ore in China with a slew of new infrastructure projects
- Major reason is the slump in domestic demand last year.
