30 Billion Dollar of India-China Trade Deficit in First two quarters of Financial Year 2021-22

Union Minister of Commerce and Industry – Shri Piyush Goyal

Balance of Trade and Trade Deficit

The balance of trade, commercial balance, or net exports, is the difference between the monetary value of a nation's exports and imports over a certain time period. Sometimes a distinction is made between a balance of trade for goods versus one for services. The balance of trade measures a flow of exports and imports over a given period of time. The notion of the balance of trade does not mean that exports and imports are "in balance" with each other.

If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance.

Production Linked Incentive (PLI) Scheme

PLI scheme is an initiative that provides incentives to domestic industries to boost local production. Through this, specifically tailored products emerge that satisfy a base target customers. Domestic businesses also help in cutting down import bills. As per the PLI scheme, the government encouraged domestic companies and establishments to set up or expand on manufacturing units to increase production, to which the government provides incentives on incremental sales.

Tariff and Non-Tariff Barrier

Tariff barriers are the tax or duty imposed on the goods which are traded to/from abroad. On the contrary, non-tariff barriers are the obstacles to international trade, other than tariffs like quotas. These are administrative measures implemented by the country’s government to discourage goods brought in from foreign countries and promote domestically produced items. Both of these are collectively known as trade barriers.