|
While international trade has been growing at around 15% on an average, India-China trade has increased by more than 50% annually in the last five years. In 2008, China became India's largest trading partner and the bilateral trade between the two countries touched US$ 51.8 billion. India has emerged as the 7th largest export market of China and 10th largest trade partner.
If the current growth rate continues the bilateral trade between the two most populous countries may cross US$ 100 billion by 2010. Even if the growth rate in India-China trade slows down to 25% annually (a conservative projection) from the current rate of over 50%, bilateral trade between them is expected to be almost US $75 billion in 2010.
Since it is projected that, by 2050, India and China will be the two leading economies in the world, it is inevitable that bilateral trade between the two countries will be among the most important economic relationships in the world.
The targets of bilateral trade set by the Prime Ministers of the two countries during the visit of Premier Wen Jiabao’s to India in 2005 as US$ 20 billion by 2008 and US$ 30 billion by 2010 were met much ahead of the deadline. The target fixed during President Hu Jintao's visit to India in 2006 to increase the bilateral trade to $40 billion by 2010 was achieved in early 2008. In 2008 the target was again revised to US$ 60 billion by 2010, which is likely to be met by this year-end.
India-China trade (2001-2008)
Unit: Amount in US$ million
|
year
|
Indian Imports
|
Indian Exports
|
Trade balance
|
Trade Volume
|
|
2004
|
5925.58
|
7672.51
|
+1746.94
|
13,598.09
|
Growth
2005
|
77.15%
8934.64
|
80.41%
9768.34
|
+834
|
78.99%
18702.98
|
Growth
2006
|
50.5%
14588.04
|
27.2%
10469.18
|
-4118.86
|
37.4%
25057.22
|
Growth
2007
|
63.23%
24036.44
|
7.05%
14658.79
|
-9377.64
|
33.87%
38695.64
|
Growth
2008
|
64.7%
31500 (approx)
31%
|
40.02%
20300 (approx)
39%
|
-11200 (approx)
|
54.42%
51800 (approx)
34%
|
Top
India's top 15 exports to China (2006-2007)
- Ores, Slag, Ash
- Cotton + Yarn, Fabric
- Organic Chemicals
- Copper + Articles Thereof
- Precious Stones, Metals
- Iron And Steel
- Plastic
- Machinery
- Salt; Sulfur; Earth, Stone
- Inorganic Chemcals; Rare Earth Metals
- Electrical Machinery
- Hides And Skins
- Artificial Flowers, Feathers
- Tanning, Dye, Paint, Putty
- Fish And Seafood
Ores, Slag, Ash; Cotton + Yarn, Fabric; Copper + Articles Thereof; Precious Stones, Metals; Artificial Flowers, Feathers and hides and skin account for US$ 11229.57 million, which is 76% of the total exports to China. This means majority of exports are still low end products. Organic chemicals, iron and steel, plastics, machinery, inorganic chemicals, electrical machinery account for only US$ 2203.592 million, which is 15% of the total exports to China. This means export of value added products is still to pick up.
Top
India's top 15 imports from China (2007-2007)
- Electrical Machinery
- Machinery
- Organic Chemicals
- Iron And Steel
- Iron/Steel Products
- Fertilizers
- Plastic
- Impregnatd Text Fabrics
- Silk; Silk Yarn, Fabric
- Vehicles, Not Railway
- Inorganic Chemicals; Rare Earth Metals
- Manmade Filament, Fabric
- Optic, Nt 8544;Med Instruments
- Mineral Fuel, Oil Etc
- Aluminum
Electrical machinery, machinery, plastics, iron & steel, fertilizers, inorganic chemicals, organic chemicals, optical instruments, medical instruments, auto components and aluminum recorded heavy growth in imports from China. Electrical products, electronic products and machineries occupy 47% of the total imports from China. Majority of the products imported from China are high end or value added products.
Top
Trade Deficit
India's trade deficit with China has been steadily increasing over the years. Growth rate of India's trade deficit with China (around 70%) has overtaken the increase in bilateral trade between the two countries (more than 50%). Between January 2008 and December 2008, India had a trade deficit of US$ 11.2 billion with China.
India-China trade volume down 30% (Jan-April 2008)
The global economic recession has also affected the bilateral trade between India and China, which came down by 30.4% a year-on-year basis to $13.07 billion during the period from January to April 2009, according to the National Bureau of Statistics of China. Imports from China dropped by 13% to $8.405 billion and exports to China by 48.8% to $4.662 billion during this period. The total trade volume between the two countries had reached over $51 billion in 2008.
Top
|
