Sino-India trade at a record $125bn for 2021 - A brief

Sino-India trade relations are zooming, despite LAC troubles. A brief insight.

 Sino-India trade at a record $125bn for 2021 - A brief

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• The story: Among border tensions, Indian imports from China have seen the rise of about $16 billion in 2021, around a 67% increase compared to 2020 imports. This came as a surprise to most, given the public pronouncements by many to the contrary.

• Key points to note: More than 8,455 different types of items have been imported from China. The list covers a range of chemicals, electronics, auto components and textiles. The top 100 items by value accounted for $41 billion, up from $25 billion in 2020. India’s total imports from China crossed a record $97.5 billion in 2021.

1. The bilateral trade now stands at $125 billion, crossing the $100 billion mark for the first time. It is up 43.3% from 2020 when bilateral trade was worth $87.6 billion.
2. Integrated circuits increased by 147%, laptops and personal computers by 77%, and oxygen apparatus fourfold rise in imports.
3. Intermediate products, particularly chemicals, saw striking growth (Acetic acid saw an eightfold increase)
4. India was China’s 15th largest trade partner in 2021,
5. China’s exports to the US increased by 27.5% in 2021, while imports grew by 32.7%, reaching $179.53 billion.
6. integrated circuits were up by 147%, laptops and personal computers by 77%, and oxygen therapy apparatus by more than fourfold

• Reasons for the huge jump: Growth in India’s exports worldwide has also increased the need for crucial intermediate inputs from China. The recovery in domestic demand for finished products from China. Disruptions in trade with other countries have led to greater imports from China in the short-term. But overall, one thing is clear - India is not able to wean itself off the addiction of Chinese imports as its industry is heavily dependent on Chinese materials.
• Strategic importance of it: If the troubles at the LAC continue, and imports into India rise in parallel, India will have to sooner or later take a decisive call.
• Summary: The increase in the imports of readymade goods such which could be manufactured in India (like toys, electronics, or furniture etc.) is not a good sign. Efforts should be made so that India could fulfil the growing demand in house.
• EXAM QUESTIONS: (1) Throw light on India-China relations post Covid19. Are they better or worse? (2) "India-China economic ties: Impact of Galwan" - Critically analyse.

#India #China #IndoChinatrade #LAC #Galwan

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