{"id":34043,"date":"2022-12-15T04:43:46","date_gmt":"2022-12-14T23:13:46","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=34043"},"modified":"2025-06-30T12:05:15","modified_gmt":"2025-06-30T06:35:15","slug":"india-china-trade-relations","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-china-trade-relations\/","title":{"rendered":"India \u2013 China Trade Relations"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>Background<\/strong><\/li>\n<li><strong>India-China Trade Relationship (Data, Imports\/Exports, Reasons behind trade deficit)<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>China\u2019s latest transgression on the Line of Actual Control (LAC) in Arunachal Pradesh led to calls for snapping trade ties.<\/li>\n<li>However, official data show that India\u2019s imports from China have jumped to a record high over the last 30 months.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Background:<\/strong><\/h2>\n<ul>\n<li>Indian and Chinese soldiers clashed in the Tawang sector of <strong>Arunachal Pradesh <\/strong>last week.<\/li>\n<li>Both the countries had been working to de-escalate tensions since the major clash which took place in Galwan valley in 2020.<\/li>\n<li>The incident took place on December 9 after 300-400 soldiers from the People\u2019s Liberation Army (PLA) intruded across the Line of Actual Control.<\/li>\n<li>The intrusion was resisted by Indian soldiers deployed there in a firm and resolute manner, forcing the Chinese to retreat.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>India \u2013 China Trade Relationship:<\/strong><\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/oVLUiYOZLHrIDLZVgo8n7LS9vDUiD4QONcbviBUvdhryvbzdv2OXREUO06OrJ4bxWPSztiNE5Vv1Wc9H4LgT_1kbDA6qm_YVVA87o8NwJpsKiyI_6Io8QCt-a7wMnLuIwK3BhqOxTq8CYbZITEFcsw\" alt=\"\" \/><\/p>\n<p>Image Caption: India\u2019s trade with China<\/p>\n<ul>\n<li>According to data from the data from the Commerce Ministry, the total merchandise trade between India and China rose 34% to <strong>$115.83 billion<\/strong> in the 12 months to March 2022.<\/li>\n<li>Trade between the two nations so far this year \u2014 between April and October \u2014 stood at <strong>$69.04 billion<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>What are the major Imports\/Exports from\/to China?<\/strong><\/h2>\n<ul>\n<li>China is <strong>India&#8217;s largest trade partner for the year 2022<\/strong>.<\/li>\n<li>India\u2019s major imports from China are \u2013\n<ul>\n<li>Electronic goods ($35.4 billion), engineering goods ($24.9 billion), chemicals and related products worth $19.6 billion, other manufactured goods ($8.3 billion), and textiles ($2.8 billion).<\/li>\n<\/ul>\n<\/li>\n<li>India&#8217;s major exports to China include \u2013\n<ul>\n<li>Engineering goods ($5.4 billion), agricultural and allied products ($3.8 billion), ores and minerals ($2.9 billion), chemicals and related products ($2.9 billion), and petroleum and crude products ($1.9 billion).<\/li>\n<\/ul>\n<\/li>\n<li>Traditionally, India imports more from China than it exports, <strong>thus India&#8217;s trade balance in 2021 stood at negative $65.05 billion<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>What are the reasons behind high trade deficit?<\/strong><\/h2>\n<ul>\n<li>The reason behind India&#8217;s extremely high and continuously widening import-export trade deficit is that <strong>it imports goods to fill the gap <\/strong>between domestic production and supply as well as consumer and demand preferences for various products.<\/li>\n<li>More specifically, the growth of the trade deficit can be attributed to two factors \u2013\n<ul>\n<li>A <u>narrow basket of commodities, mostly primary, that India exports to China<\/u>.<\/li>\n<li>Market access impediments for most Indian agricultural products and competitive markets, such as pharmaceuticals, IT\/ITES, etc.<\/li>\n<li>The <u>raw material-based commodities that India exports have been overshadowed by Chinese exports over time<\/u>.<\/li>\n<\/ul>\n<\/li>\n<li>Many industries in India, <strong>especially the medical industry, are heavily reliant on Chinese products<\/strong>.<\/li>\n<li>For example, <u>India&#8217;s $42 billion pharmaceutical industry imports about 68% of its active pharmaceutical ingredients (APIs) APIs from China<\/u>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) Does China and India have free trade agreement?<\/strong><\/h3>\n<p>No. As of yet, India and China do not have any free trade agreement.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Q2) How much do India import from China?<\/strong><\/h3>\n<p>During 2021-22, 15.42 per cent ($94.57 billion) of India&#8217;s total imports ($613.05 billion) came from China.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s imports from China have jumped to a record high over the last 30 months.<\/p>\n","protected":false},"author":5,"featured_media":34044,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-34043","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=34043"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/34044"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=34043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=34043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=34043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}