India-China trade deficit expands to $12 billion

July 5, 2013

There is a 34% surge in the trade deficit b/w India-China that reached $ 12 billion in the first five months of 2013, portraying a grim picture for Indian exports as bilateral trade continued to decrease, discouraging hopes of attaining a trade volume of $ 100 billion by 2015.
Some key facts:

The India-China bilateral trade touched $ 26.5 billion till May 2013. The trade deficit for India has expanded year-on-year to $ 12 billion, up by 34%. The trade volume was lowered by over $ 2 billion compared to 2012.
While the Chinese exports registered marginal increase the bilateral trade numbers are falling. Exports have declined substantially while imports have risen marginally.
Adding to the concerns, India’s main export items like cotton, iron ore and copper have continued their downward slide. Iron ore plunged by 76% to $ 595.42 million. Cotton and copper declined by 40% to $ 1.39 billion and 24% to $ 688.53 million respectively.
India’s overall share in Chinese exports has dropped to under 1% from 1.33%. Cotton yarn and diamonds are the other two exports that rounded off the top five. Cotton yarn is the only item which is showing a jump of 115% to reach a value of $ 740 million.
Diamonds have increased by 14% to record $ 562.1 million. The Chinese exports to India were increasing by 2.7% year-on-year.

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