India-China Relation / 'Dragon's hold' increases in Indian market- how long will we remain dependent on China!

India-China Relation: After the encounter between the armies of India and China in the Galwan Valley, the situation changed politically. An attempt was made to bring about similar change economically as well. Many Chinese apps were banned. Dumping duty was increased on many types of goods. Even after that, India's imports from China did not decrease. The share of Chinese goods in India's markets has been increasing continuously. The July data that has come out is very shocking. India's import bill from China has increased by 13 percent. Whereas the situation of export is completely opposite. In which a decline of more than 9 percent has been seen. Let us try to understand from the data what are the conditions of export and import from India.

Imports from China are increasing continuously

The country's exports to China fell by 9.44 percent to $ 1.05 billion in July, while imports increased by 13.05 percent to $ 10.28 billion. According to the data of the Ministry of Commerce, in the April-July period of the current financial year, exports to China fell by 4.54 percent to $ 4.8 billion while imports increased by 9.66 percent to $ 35.85 billion. Thus, India's trade deficit with China stood at $ 31.31 billion. China has emerged as India's largest trading partner, surpassing the US, with a trade (export and import) of $ 118.4 billion in the financial year 2023-24.

India's exports to China grew by 8.7 percent to $ 16.67 billion in the last financial year. Imports from the neighboring country grew by 3.24 percent to $ 101.7 billion. The trade deficit increased from $ 83.2 billion to $ 85 billion in the financial year 2022-23. China was India's top trading partner from 2013-14 to 2017-18 and 2020-21. Before China, the United Arab Emirates (UAE) was the country's largest trading partner. America was the largest partner in 2021-22 and 2022-23.

Import and export from America and Russia

According to the data, exports from the country to America increased by 3.15 percent to $ 6.55 billion in the month of July, while imports increased by 1.43 percent to $ 3.71 billion. During the April-July period of the current financial year, exports to America increased by 9 percent to $ 27.44 billion, while imports increased by 6.59 percent to $ 15.24 billion. Thus, the trade surplus stood at $ 12.2 billion. Similarly, the country's imports from Russia increased by 22.56 percent to $ 5.41 billion in July. Due to the import of crude oil during April-July in the current financial year, total imports increased by 20.33 percent to $ 23.77 billion.

Decrease in exports to these countries

According to the report released by the government, in the month of July, there has been a decrease in exports from the country to Britain, Germany, South Africa, Malaysia, France, Italy, Australia, Nepal, Brazil, Belgium, Turkey and Indonesia. On the other hand, there has been an increase in exports to America, United Arab Emirates, Netherlands, Singapore, Saudi Arabia, Bangladesh and Mexico. According to experts, at present, there are signs of recession in the rich countries of the world. After that, there has been an increase in exports to these countries, which is a big thing.

Reason for increasing imports from China

When asked about the reason for the increase in imports from China, Commerce Secretary Sunil Barthwal said that no country in the world, including America and the European Union, can remain isolated from China. He said that India is one of the fastest growing major economies in the world and its consumption is also increasing. He said that if imports are increasing in line with exports or domestic consumption, then I do not think we should worry about it.