China’s total trade surplus with India ‘surpasses $1 trillion’
Tags: Economy/Finance International Relations
Since the boom in bilateral trade in the early 2000s, China has taken advantage of a favourable trade balance with India that now exceeds $1 trillion.
India-China bilateral trade
Bilateral annual trade between India and China crossed $100 billion for the first time in 2021 to reach $125.6 billion, of which India's imports were $97.5 billion.
Trade ties between both countries began to boom in the early 2000s.
This was largely driven by the import of Chinese machinery and other equipment by India.
It increased from $3 billion in 2000 to $42 billion in 2008 and China became India's largest trading partner in 2008.
One-third of the machinery and about two-fifths of organic chemicals that India buys from the world come from China.
Automotive parts and fertilizers are other items where China accounts for more than 25 per cent of India's imports.
India procures nearly 90 percent of the parts for some mobile phones from China.
India’s export to China
China is also a major partner of India in terms of export market.
China is the third largest destination for Indian shipments.
According to the Federation of Indian Export Organisations (FIEO), India's share in China's total exports is only a little over two per cent.
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