India – China trade shows first signs of slowdown in years

The India-China trade, which in recent years rose sharply despite bilateral tensions over the border dispute, showed the first signs of a slowdown in years falling by 0.9 per cent in the first half of this year.

This came as China’s overall foreign trade declined by about five per cent as its economy struggled to recover from COVID blues.

China’s exports to India in the first half of this year totalled USD 56.53 billion compared to USD 57.51 billion last year registering a decline of 0.9 per cent, according to the data released by Chinese customs.

India’s exports to China during the same period totalled USD 9.49 billion compared to USD 9.57 billion last year.

The trade deficit in the first half of 2023 too declined significantly to USD 47.04 compared to USD 67.08 billion last year. Last year was a bumper year for India-China trade as it touched an all-time high of USD 135.98 billion despite the continued chill in the bilateral ties over the military standoff in eastern Ladakh in May 2020.

The total India-China trade in 2022 overtook the USD 125 billion mark by registering an 8.4 per cent increase.

India’s trade deficit with China crossed for the first time a USD 100 billion mark despite frosty bilateral relations.

The trade deficit for India stood at USD 101.02 billion in 2022 crossing the 2021 figure of USD 69.38 billion.