Trade Deficit with China

With a view to reducing trade deficit with China, efforts are being made to diversify the trade basket with emphasis on manufactured goods. We are also pursuing market access issues to tackle non-tariff barriers in the Chinese market at different fora. At the Ministerial level, we have India-China Joint Group on Economic Relations, Trade, Science and Technology (JEG) where trade related issues are taken up regularly. Indian exporters are encouraged to participate in major trade fairs in China to show–case Indian products in the Chinese market and increase engagement with Chinese companies. Participation of Indian exporters in trade fairs educates the Chinese importers about niche Indian products. Business to Business relations are also encouraged through schemes such as Market Access Initiative (MAI)/Market Development Assistance (MDA) for promoting exports to China.

During 2012-13, exports to China was US $ 13,579.51 million while imports was to the tune of US $ 52,248.33 million. The trade deficit with China was US $ 38,668.81 million during the period.

During the current year 2013-14 (P) for the period April-October, exports to China was US$ 7,225.59 million and imports was US$ 30,511.17 million. The trade deficit declined by 2.6% during the above period over the corresponding period last year.

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. E.M. Sudarsana Natchiappan in Rajya Sabha today.