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China is India’s top trade partner, enjoys a huge trade surplus

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(TibetanReview.net, May12’24) —Despite what India has been saying about the normalization of its overall ties with China being subject to the resolution of the ongoing four-year-old border standoff in eastern Ladakh, trade between the two counties has been rising, and in China’s favour.

China has emerged as the largest trading partner of India with $118.4 billion two-way commerce in 2023-24, slightly edging past the US, said a PTI news agency report May 12, citing data from economic think tank Global Trade Research Initiative (GTRI).

The US was the top trading partner of India during 2021-22 and 2022-23.

China continues to enjoy a huge trade surplus with India. The data were stated to show that India’s exports to China rose by 8.7% to $16.67 billion in the last fiscal. The main sectors which recorded healthy growth in exports to that country include iron ore, cotton yarn/fabrics/made-ups, handloom, spices, fruits and vegetables, plastic and linoleum.

Imports from China increased by 3.24% to $101.7 billion.

“This growth in imports led to an expanding trade deficit in India, rising from $53.57 billion in FY2019 to $85.09 billion in FY2024, highlighting concerns over stagnant exports amidst rising imports,” GTRI Founder Ajay Srivastava has said.

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