Date : 16 Jan 2022
India-China Bilateral trade crosses 125 billion USD in 2021Tags :
Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.
Why in News?
- Bilateral trade between India and China crossed 125 billion USD in 2021, according to Chinese customs data released on 14th January 2021.
- Despite a protracted border standoff, two-way trade between India and China in 2021 stood at 125.66 billion USD, up 43.3% from 2020 when bilateral trade was worth 87.6 billion USD.
- In 2021, China’s exports to India were 97.52 billion USD, up 46.2%, while China imported 28.14 billion USD worth of goods from India, up 34.2%, according to statistics released by the General Administration of Customs (GAC).
- Trade deficit between the two countries remained in favour of China – at $69 billion. The deficit in trade has been a constant source of friction between New Delhi and Beijing, with India complaining that China hasn’t given Indian companies access to sectors like pharmaceuticals.
- In pre-pandemic times in 2019, the bilateral trade was 92.8 billion USD and both countries were aspiring to touch the mark of 100 billion USD.
- Due to COVID, India-China trade in 2020 declined to 87.6 billion USD, the lowest since 2017.
- In the first half of 2021, Chinese companies saw an increase in demand from India for medical equipment due to a devastating second wave of the coronavirus pandemic.
- The US maintained its place as China’s third-largest trade partner following ASEAN and the European Union.