India’s export to China is expected to reach an
all-time high during the current financial year with the US-China trade war
creating new opportunities for exporters and Beijing removing some trade
barriers in its effort to check the growing bilateral trade imbalance.
The growth in trade between the two countries is
driven by marine products, organic chemicals, plastics, petroleum products,
grapes and rice, according to an official release of the Commerce Ministry.
“India’s exports to China have grown after
several years. India is poised to achieve its highest ever exports to the
country this fiscal. Between April and December 2018, exports were 12.7 billion
US Dollars which is closer to last year’s exports of 13.33 billion US Dollars,”
the release said.
The commerce ministry, however, believes that
more efforts are required for greater market penetration in China. “India is
hopeful of soon signing protocols for export of Indian soya bean meals, cakes
and pomegranates to China in the near future, as these are in advanced stages
of discussion,” the release added.
Discussions are on with the Chinese for early
announcement of import quotas for sugar and rice for 2019 so that Indian
exporters are able to plan their exports well in time, it said.
India’s trade deficit with China was a huge $63
billion in 2017-18, which was more than a third of the country’s total trade
deficit, with exports to China at $13.3 billion and imports from the country at
India has been pressing hard with Chinese
interlocutors to provide more market access of Indian goods like rice
pharmaceuticals and marine products in a bid to reduce the growing trade
deficit between the two countries
Acknowledging the need to take steps to check the
deficit, China signed three export protocols on rice, fishmeal and tobacco — to
allow imports of the three items.
New Delhi is hopeful that the new protocols being
discussed would boost India’s exports further and rein in the deficit.
Discussions are also on for early announcement of
Chinese import quotas for sugar and rice for 2019 so that Indian exporters are
able to plan their exports well in time.
Department of Commerce took the initiative to
identify and share with Indian exporters and other stakeholders, specific lines
where the US will lose competitiveness in China and where India had an export
potential, according to the release.