Last month, there was a trade of $ 11.49 billion between the two countries. Of this, exports from India are only $1.26 billion, while India imported $10.23 billion from China. Obviously, the trade deficit stood at about $10 billion.
In the trade between India and China, these lines are becoming more and more true every day that the merger kept on increasing, as the medicine went on. The narrative for the last two and a half years has been that India is trying to tighten economic crackdown on China. But every month when import-export figures come out, the opposite story appears. In the full year of 2021, the trade of both countries had reached $ 126 billion. There would not be much concern in this, if there was a balance in import-export. But the story was that India only exported about $27 billion, while imports came in about $99 billion. In the middle it was reported that America has now become India’s largest trading partner. But now according to the August data released, China has again achieved this status. But what is worrying again is the trade imbalance. Consider: Last month, the trade between the two countries was $ 11.49 billion.
Of this, exports from India are only $1.26 billion, while India imported $10.23 billion from China. Obviously, the trade deficit stood at about $10 billion. Some experts have attributed this to the reason that the economy in India is gaining momentum, hence the demand for imported goods has increased. But the question will arise that why are the allied industries of Indian business not developing in the country? A healthy industrial structure is one in which the supply chain of inputs is also built around. This leads to expansion of employment opportunities and prosperity. Otherwise, if some big industry is making profit by importing materials from China, then it cannot be a model of general prosperity of the country. Then there is also the question that if the economy is catching up, then why are exports from India not increasing in the same proportion? Therefore, an attempt should not be made to give a simplified answer to this problem. Rather, the question should be focused on what is the solution to it.
