NEW DELHI: India’s trade deficit with China came down to $5.8 billion in the April-June 2020-21
period from $13.1 billion in the same period of the last financial year, Commerce & Industry Minister Piyush Goyal said in a written reply to the Lok Sabha.
Total trade between the two nations slipped to $16.55 billion in Q1 FY21 from $21.42 billion in the April-June period of 2019-20.
“The government has consistently taken steps to balance our trade with China by increasing our exports to China and to reducing our dependence on imports from China,” Goyal said.
India’s export to China increased to $ 5.53 billion in Q1FY21, from $4.16 billion in Q1 FY20, even as both the nations observed strict lockdown to contain coronavirus outbreak during the quarter.
“Appropriate use of trade remedies by way of safeguard, countervailing and anti-dumping duties have been used to protect our industry from unfair trade practices adopted by trading partners. Government has made certain changes in the FDI policy and public procurement policy to safeguard the national interest,” said Goyal. In FY20, India’s trade deficit with China was $48.64 billion which was lower than the trade deficit of $53.56 billion in FY19, according to the data.
In a separate reply to the Lok Sabha, Goyal also said that at present, about 550 tariff lines (or products) are under the restricted/prohibited category for imports under the Foreign Trade Policy. Imports of these products are restricted from all countries, including China.
CONTINUOUS STEPS TO LOWER TRADE BARRIERS
The Centre has been taking steps to bridge the trade deficit by lowering trade barriers for Indian exports to China as well, Goyal said. The two nations also agreed to increase bilateral trade in a more balanced manner.