Isolated trade is increasing China’s dependence on India, Indian exports to China increase by 30.70% in four months. On the border in eastern Ladakh, China is seen to have two arms with India. But in the business world, isolated Chinese dependence on India is increasing.
India’s total exports declined by 30 percent in April-July of the current fiscal year 2020-21, but exports to China increased by 30.70 percent in the same period last year. At the same time, imports from China in April-July this year fell by 29.20 percent compared to the same period last year.
Except for April this year, exports to China registered an increase in the remaining three months. Exports to China fell 20.72 percent in April due to global lockdown. According to the Commerce Ministry data, exports to China in May this year increased by 48.39 percent over May last year.
Exports to China increased by 77.74 percent in June and 23.70 percent in July. The August export figures will be released next week on 14 or 15 September. The growth in exports to China in August is likely to continue. According to exporters, after the Corona transition, countries like America, Japan, and Australia began to distance themselves from China.
China, which has a share of more than 10 percent in global trade, is in dire need of raw materials and only India can meet it. This is the reason that China has been importing a lot of raw materials from India for the last three months. These include raw materials such as steel coils, cotton, chemicals. According to exporters, now India’s goal is to send finished goods to China instead of raw materials.
India is successful in reducing imports from China
Foreign trade experts said that the government’s efforts to reduce imports from China have started showing effect. He said that Indian manufacturers are starting to distance themselves from China to get goods. The prohibition or increase in duty on many items has also made a difference.
According to sources, the Ministry of Commerce has prepared a list of 1200 such items coming from China, whose imports can be banned. In May this year, imports from China declined by 22.8 percent compared to the same period last year, 43.75 percent in June and 9.77 percent in July.