India-China Trade: The $100 Billion Mark
Despite cold relations between China and India, and latest trade loss of 50,000 cr for China exporters in Diwali business, trade between two countries is rising.
But this is not a very good news for Indian Economy, as with increase in trade , trade deficit between two countries is increasing.
As per foreign secretary Harsh Vardhan Shringla, trade between India and China continues to expand, it remains ‘unbalanced’ and is tilted in the favor of China.
The critical dependency of Pharma , chemical , Auto, Agriculture sector on China is another alarming point.
20% auto components, 70% electronics component, 45% consumer durables, 70% APIs, 40% leather goods are imported from China.
Another big concern, Indian IT, pharma and Agriculture product face barrier in china market due to China’s policy.
Chinese investors already invested almost 4 billion USD in Indian start-ups. 18 out of 30 unicorn startup received fund from Chinese investor.
80% of Indian smartphone market is controlled by Chinese smartphone, while Indian smartphone control less than of 1% of Indian Smartphone Market.
With increase in demand for EV, Chinese control in India market will increase.
The main reason for popularity of Chinese products is cheap labour, exchange rate , currency manipulation & subsidized domestic manufacturing.
With increasing purchasing power of Indian people, Chinese investment and market control in increasing in India.
China was India’s top trading partner in the April-July period, followed by the US, UAE, Saudi Arabia and Singapore, according to data from India’s commerce ministry.
India already did a trade of historic 100 billion USD with China this year, with a trade deficit of ~54 billion USD. China’s exports to India stood at $78.33 billion, while India exported goods worth $23.96 billion to China.
China will become world’s largest economy by 2030 while India will become third largest economy by 2050. At present, China is the world’s second largest economy and India is fifth.
So, It doesn’t matter, what Indian Media or right wing is celebrating, fact is that we are still dependent on China and this dependency is increasing day by day.
It is also our moral duty, that instead of celebrating Hate and extremism, we should question Government and Law makers for such issues.
