Indian exports to China rise sharply in Jan-April period
After years of decline, Indian exports to China rose sharply in the first four months of this year registering a 20 per cent increase to $5.57 billion, though the trade deficit continued to persist.
Indian exports received a major boost mainly due to China increasing the steel consumption by importing big quantity of iron ore as well as gems and diamonds besides cotton materials.
The India-China trade grew by six per cent to $26.02 billion from January to April this year, according to the data of China's customs accessed by PTI here.
As per the data, the Indian exports have gone up to $5.57 billion, registering a 20 per cent increase.
China's exports to India too amounted to $20.45 billion, a 14 per cent raise. The trade deficit problem for India, however, continued. The trade deficit in the first four months amounted to $14.88 billion in favour of China. Last year, the deficit aggregated to around $52 billion in a little over $70 billion total bilateral trade becoming a thorny issue between the two countries.
But the spurt in Indian exports to China this year showed promise of recovery, the first since iron ore exports started declining in 2013 due domestic crackdown on mines as well as China scaling down its steel production due to global economic crisis.
The trade deficit began expanding ever since the iron ore exports, the main stay of Indian exports started declining.
The iron ore exports from India to China in the first four months totalled to $1.04 billion jumped by about 45 per cent. Also, Indian exports of iron and steel rose by $218 million almost 300 per cent.
Indian diamond, gems and precious stones exports also contributed to the rise.
In the first quarter this year, Indian exports of diamonds and gems and stones amounted to $558 million.