Tension with China has no effect on trade: India has committed a record Rs 6.59 lakh crore. 49% more than last year

The mutual trade between India and China has reached a record level this year. Between January 1 and November 30, 2021, a total business of Rs 8.57 lakh crore was done in both the countries, which is 46.4% more than the previous full year. The important thing is that in these 11 months, India got Rs 6.59 lakh crore from China. Bought goods of Rs.

At the same time, China has taken a total of Rs 1.98 lakh crore from India. goods, which is 38.5% more than last year. Despite this, India’s trade deficit has increased to 4.61 lakh crore, which is the highest ever. This figure of record trade between the two countries is shocking the world because tension has increased between the two countries on the LAC since last year. More than 50-50 thousand soldiers are deployed on both sides. This number is the highest since the 1962 war.

2021 has been very good for China from the point of view of trade with India
Despite the failure of commander-level 12 talks regarding the border dispute, coordination at the Ministry of External Affairs in both the countries is intact. According to the trade data released by the Chinese government, the year 2021 has been very good for them from the point of view of trade with India. To increase trade, both the countries have agreed to form a High Level Economic and Trade Dialogue (HETD). It will include the Foreign Minister of India and the Vice Premier of China.

Goods worth 6.6 lakh crores came to India from China in 2020
In 2020, India’s trade with China was worth 6.6 lakh crores ($ 87.6 billion). Of this, about $ 50.28 lakh billion was imported from China to India. Prior to this, in the year 2019, India imported the most electric machinery and equipment ($20.17 billion) from China, besides organic chemicals $ 8.39 billion, fertilizers $ 1.67 billion were India’s top imports.
Trade data for the years 2014-15 to 2019-20 shows that India exports low-value raw materials, while importing high-value manufacturing goods.

India exports iron ore and petroleum fuel
China’s exports from India are mainly iron ore, petroleum fuel, organic chemicals, refined copper, cotton yarn. Apart from this, fish and seafood, black pepper, vegetable oil, fat etc. are prominent in the food items exported. Granite blocks and other building stones and raw cotton were also exported.

These things are imported
In the last few years, the major items imported from China into India are automatic data processing machines and units, telephone equipment and video phones, electronic circuits, transistors and semiconductor devices, antibiotics, fertilizers, sound recording devices and TV cameras, auto components and Includes accessories and project goods. India largely imports finished products from China to meet its domestic needs. China dominates the electronic hardware market.

What is trade deficit?
If the value of imports is more than the export value of any country, then it is called trade deficit or trade deficit. The higher the value of imports than the value of exports, the greater is the trade deficit.