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china, India, trade partner

China emerges as India top trade partner in 2020 despite souring relations

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china, India, trade partner

China has pipped the United States to emerge as India’s biggest trade partner in 2020 yet again. This despite the rise in anti-China sentiment in India amid months of conflict between the two neighbouring nations at the Ladakh border along the Line of Actual Control (LAC).

China has pipped the United States to emerge as India’s biggest trade partner in 2020 yet again. This despite the rise in anti-China sentiment in India amid months of conflict between the two neighbouring nations at the Ladakh border along the Line of Actual Control (LAC).

According to news agency Bloomberg, China regained its position as India’s top trade partner as New Delhi continued to rely on imported machinery. It has outweighed the central government’s effort to curb trade relations with China, following the bloody Galwan Valley clash.

Last year, the two-way trade between the two neighbouring countries stood at $77.7 billion, according to provisional data from the commerce ministry. Although the two-way trade amount in 2020 is lower than the previous year’s $85.5 billion, the Bloomberg report said it was enough to make China the largest commercial partner of India.

It may be noted that China had already emerged as India’s biggest trade partner in the first half of the financial year 2020-21, overtaking the US which had held the position since 2018-19.

China had replaced the US In the previous calendar year as India’s biggest trading partner. The two-way trade between India and the US stood at $75.9 billion as Covid-19 restrictions impacted trade between the two countries.

Meanwhile, UAE continues to remain India’s third-biggest trading partner.

The central government had taken a stern view on matters of trade with China after the Galwan Valley clash that resulted in the deaths of several Indian soldiers. The government banned hundreds of Chinese mobile apps, including some popular ones like TikTok. Some other decisions on the trade and investment front were also taken to limit Chinese participation.

However, India’s high dependence on Chinese heavy machinery, telecom equipment, and other products seems to have impacted the government’s plans.

It may be noted that at $58.7 billion, Indian imports from China were more than collective purchases from the US and UAE together. In terms of exports, too, India’s shipments to China grew 11 per cent year-on-year to $19 billion in 2020.

The fresh provisional data comes at a time when trade organisations like the Confederation of All India Traders have been campaigning against Chinese goods, vowing to boycott nearly 3,000 items. The trade body has set a target of reducing imports from China by as much as $13.3 billion by next December.

 

Source: INDIA TODAY

 

china, India, trade partner

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