While India’s exports to China has witnessed an increase, imports from the country shrank 13% in 2020. India imports goods worth USD 59 billion from China till November this year owing to trade tensions between the nations.
The data released by Chinese customs reveals that China exported products worth USD 59 billion to India from January to November, down by 13%. Further, it also mentioned that the decrease in exports is slightly less than the drop of 16.2% in the first ten months this year. On the contrary, China’s imports from India surged 16%. Chinese state media reported that the country did not politicize economic interactions with the neighbouring nation.
The Global Times, a tabloid under the Chinese Communist Party’s People’s Daily newspaper termed the decrease in India’s imports from China as a “prejudicial attitude”. Also, it noted measures taken by the Indian government to restrict the inflow of made-in-China products into India. It compared this with China’s increase in imports from India till November, which amounted to USD 19 billion.
Organic Chemicals, Iron Ores, Unfinished Diamonds- Top Export Products to China From India
The data collated by the Indian embassy in Beijing revealed that India’s top exports to China included organic chemicals, iron ores, unfinished diamonds, fish and crustaceans, cotton, and granite stone. Also, India was the largest export destination for Chinese organic chemicals, fertilizers, antibiotics, and aluminium foil in 2019.
China Starts Importing Indian Rice
After decades, China has started showing interest in buying rice from India. It has contracted with Indian traders for exporting 100,000 tonnes of broken rice for December-February shipments. Also, India has shipped around 150 tonnes of basmati to China till October in 2020-21 fiscal. AIREA executive director Vinod Kaul attributed fall domestic output for the increase in demand for Indian rice by China. Besides, India’s competitive price is also an advantage to the nation.
In all, China’s increase in exports from India, especially rice, is a purely commercial move, given the discounted prices offered.