NEW DELHI: Despite a series of measures taken by the government to reduce India’s imports on China, especially after Galwan valley conflict, India’s bilateral trade with China zoomed by 62.7% in the first half of this year, recording a new high, on account of imports of medical supplies during the second Covid wave.
According to data released by China’s General Administration of Customs (CGAC), the total trade between the two countries stood at $57.48 billion between January and June period. After the Chinese aggression in Galwan Valley, India took many measures to curtail imports and banned many Chinese apps. However in about a year, the bilateral trade has surpassed even the pre-pandemic levels of 2019, when both countries recorded bilateral trade at $44.72 billion in the first half of the year.
The data released by the Chinese agencies, India’s imports, driven mainly on account of purchases of medical supplies, reached $42.76 billion this year, up 60.4% compared to $35.8 billion recorded in the same period in 2019.
Data suggested that India imported more than 26,000 ventilators and oxygen generators in April alone. On the positive note, even India’s exports to China climbed 69.6% to $14.72 billion, mainly on account of iron ore, cotton, and other commodities.
Data by CGAC revealed that between January and April this year, India exported a total of 20.28 million tonnes of iron ore to China, an increase of nearly 66% from the same period of last year. This accounted for nearly 90% of India’s total iron ore export.
The growing geopolitical tensions between both countries, India’s trade with China had declined 5.6% to a three-year low at $87.6 billion in 2020. Despite that China still managed to remain India’s biggest trading partner, surpassing the United States. By the end of June this year, China replaced the UAE as the second largest export destination for India, with outbound shipments to the neighbouring country rising 27.53%.
Trade off
USD 14.72 billion India’s total exports to China, an increase of 69.6%
USD 57.48 billion Total trade between India and China between January and June 2021
USD 42.76 billion India’s imports during first half of this year, up 60.4% from 2019 period
USD 44.72 billion Total bilateral trade recorded during the same period of 2019