Not enough investments in manufacturing and value addition have led to severe demand-supply mismatch in India. The creation of a market for manufactured and value-added goods from China can correct this, Minister of State for Commerce & Industry Jyotiraditya Scindia said in a written reply to the Rajya Sabha.
India’s trade deficit with China reached $23.9 billion in 2010-11 from $19.2 billion in 2009-10. India’s imports from China in 2010-11 were $20 billion more than its exports to the neighbouring country. China accounts for 11.5 per cent of India’s total imports.
India mainly imports cell phones, project goods, digital products, chemicals, urea and machinery parts from China. The top five items of import from China are electrical machinery and equipments ($11.86 billion), mechanical machinery and appliances ($7.7 billion), project goods ($ 3.2 billion), organic chemicals ($3.85 billion) and iron & steel ($1.99 billion), according to an estimate.
