India's trade deficit with China dips to $44 bn in FY21

India's trade deficit with China dips to $44 bn in 2020-21

Imports from China during 2018-19, 2019-20 and 2020-21 were worth $70.32 billion, $65.26 billion and $65.21 billion, respectively

Representative Image. Credit: iStock Photo

India's trade deficit with China has declined from $53.57 billion (more than Rs 39,000 cr) in 2018-19 to $44.02 billion (more than Rs 32,000 cr) in 2020-21, Minister of State for Commerce and Industry Anupriya Patel said on Friday.

Exports to China has increased to $21.19 billion in 2020-21 from $16.61 billion in 2019-20, Patel said in a written reply to the Rajya Sabha.

Exports were $16.75 billion in 2018-19. Imports from China during 2018-19, 2019-20 and 2020-21 were worth $70.32 billion, $65.26 billion and $65.21 billion, respectively.

In a separate reply, she said the decline in India's export of automobiles, including cars, is largely due to global economic slowdown and supply chain disruptions due to Covid-19 pandemic.

"With a view to create a conducive manufacturing ecosystem and to enable integration with global supply chains, the Union Cabinet on 11th November, 2020 has given approval to introduce the Production-Linked Incentive (PLI) Scheme for Automobiles and Auto components, with a financial outlay of Rs 57,042 crore over a five-year period, to make the Indian Automotive Industry more competitive," she added.