For the past few months, India & China may have been involved in verbal combat over the Border disputes considering the Doklam dispute, but during the first half of current year’s fiscal, exports to China were increased by around 39%, indicating a welcoming nature of China towards their close neighbour, India.
The Exports have grown faster than the pace of import expansions with India’s largest trading partner, China, as reflected by the latest statistics available with The Commerce Department.
However, the trade deficit has increased given the massive shipments of pharmaceuticals and electronics from across the border.
Iron ore; Cotton yarn; ferroalloys were the three major sectors driving the export jump. Also, all other raw materials feeding the China’s Manufacturing sector had a lot of contribution in a hefty surge in the country’s exports.
The Commerce Department is working to assure that the best quality of iron ores doesn’t get out of our country and only with lower ferrous content boards the ship to the Chinese Ports.
‘Now, the government is planning to bridge the trade gap by checking imports. Prabhu is looking to set up a task force under commerce secretary Rita Teaotia to rationalise the trade deficit with a sector-specific strategy, sources said.’
While the Government accepts the fact that choking the imports of smartphones and other electronics from China won’t work. Rather, the government has decided to put quality standards to assure good quality products are being imported into our country.
Incorporating trade barriers like quality restrictions will indeed be a way of signifying ‘Equivalent Retaliation’! China is trying to developing to become an open economy as connoted by The Indian Commerce Department.
Source: The Commerce Insider