India's trade with mainland China and Hong Kong fell by 7 percent to $ 109.76 in FY 2019-20. This is the biggest decline in the last seven years. In the fiscal year 2018-19, India-China trade saw a growth of 3.2 percent, i.e. within a year this trend completely reversed. The growing tension between India and China and the changing economic relations have also affected their bilateral trade. India's trade with mainland China and Hong Kong fell by 7 percent to $ 109.76 in FY 2019-20. This is the biggest decline in the last seven years. The impact of the growing tension in India-China relations, Trade on both countries decreased significantly in the last financial year.
Revenge Trend in a Year:
In the first financial year 2012-13, India-China trade saw a big decline of 10.5 percent. Significantly, in the fiscal year 2018-19, India-China trade saw a growth of 3.2 percent, i.e. within a year this trend completely reversed. Not only this, in the fiscal year 2017-18, there was a tremendous jump of 22 percent in trade between India and China. This indicates that the way anti-China sentiment has increased in the country in the last one year, it has also affected business. Considerable trade with the Mainland of China is also through Hong Kong.
Less Import of these Items:
In the fiscal year 2019-20, imports from China fell to just $ 1.5 billion due to the availability of other options for electronic items like TVs, refrigerators, AC, washing machines and mobile phones. Similarly, imports of fuel, mineral oil, pharma and chemicals have also declined. Bilateral trade with mainland China fell 6 percent to just 81.86 percent in FY 2019-20. For the first time, trade with Mainland China has declined for 2 consecutive years. In the previous year too, it had fallen by 2 percent. Earlier, there was a steep decline of 10.5 percent in trade between India and China in the financial year 2012-13.
Trade Deficit also Decreasing:
Similarly, India's trade with Hong Kong has also witnessed a drastic decline of 10.17 percent in 2019-20 trade. This is also the biggest decline in the last seven years. Prior to this, India's trade with Hong Kong declined by 14 percent in the financial year 2012-13. Due to this, the trade deficit between the two countries is also getting reduced. For the first time in the last five years, it has gone down from the figure of $ 50 billion to $ 48.66 billion. In the year 2017-18, our trade deficit with China reached $ 63 billion.
Growing trade with America is auspicious sign:
China has been India's largest trading partner from 2014 to 2018 but it reached the second position in 2018-19, when the US overtook it. The good thing is that we have a trade surplus of $ 17.4 billion with the US in the financial year 2019-20, that is, we export more than imports from there.
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