Lok Sabha Question No. 2275 (UNSTARRED), answered on 2018-12-24
Subject: Trade between India and China
Ministry: COMMERCE AND INDUSTRY
Asked by: DHANANJAY BHIMRAO MAHADIK, HEENA VIJAYKUMAR GAVIT, RAJEEV SHANKARRAO SATAV, SUPRIYA SADANAND SULE, JAYAKUMAR JAYAVARDHAN, VIJAYSINH MOHITE PATIL, P.R. SUNDARAM

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2275 TO BE ANSWERED ON 24 th  DECEMBER,2018

## TRADE BETWEEN INDIA AND CHINA

2275.   SHRI DHANANJAY MAHADIK:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI SATAV RAJEEV:

SHRIMATI SUPRIYA SULE:

DR. J. JAYAVARDHAN:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRI P.R. SUNDARAM:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the details of the imports and exports between India and China during the last three years and the current year, product, value and year-wise;
- (b) whether India's trade deficit with China has increased during the said period and if so, the details thereof and the reasons therefor;
- (c) whether China has now agreed to import raw sugar from India after several rounds of meeting in this regard and if so, the details of raw sugar to be exported to China;
- (d) the estimated quantum of foreign exchange earned during the last three years and the current year; and
- (e) the other steps taken by the Government to boost export of Indian goods to China to reduce trade deficit?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a):      Top  50  Principal  Commodity  Group-wise  India's  import  and  export  from  China  including  raw  and finished goods for the last three years and 2018-19 (upto October 2018) are attached as Annex-I and Annex-II.
- (b):    Details of trade and trade deficit with China in the last three years and the current year are given below: -

|             | Val in billion USD   | Val in billion USD   | Val in billion USD   |
|-------------|----------------------|----------------------|----------------------|
| Period      | Export               | Import               | Trade Deficit        |
| 2015-16     | 9.01                 | 61.71                | -52.69               |
| 2016-17     | 10.17                | 61.28                | -51.11               |
| 2017-18     | 13.33                | 76.38                | -63.05               |
| Apr-Oct'17* | 6.69                 | 43.46                | -36.77               |

## *Data for 2018-19 is provisional (Source; DGCI&S)

From the above table, it may be seen that India's trade deficit with China reduced from USD 52.69 billion in 2015-16 to USD 51.11 billion in 2016-17, but rose to USD 63.05 billion in 2017-18. In the current year 2018-19 upto April to October 2018, our trade deficit with China is  to  the  tuneof  USD  33.28  billion  as  compared  to  about  USD  36.77  billion  in  the corresponding period of April to October 2017 (as per the provisional figures of DGCIS).

Increasing trade deficit with China can be attributed primarily to the fact that Chinese exports to India rely strongly on manufactured items to meet the demand of fast expanding sectors like  telecom  and  power,  while  India's  exports  to  China  are  characterized  by  primary  and intermediate  products.  The  major  imports  from  China  are  products  such  as  telecom instruments, computer hardware and peripherals, fertilizers, electronic components/instruments, project goods, organic chemicals and drug intermediates, consumer electronics, electrical  machinery and equipment, iron and steel etc. These imports feed the growing demand in India for such goods which China, due to variety of reasons, is able to export to India at competitive prices. India's exports to China on the other hand include iron ore, cotton raw/yarn, petroleum products, copper and articles thereof, organic chemicals, iron and steel,  castor  oil,  plastic  raw  materials,  pearls,  precious  or  semiprecious  stones,  marine products etc.

(c):    A  series  of  meetings  with  China's  sugar  importers  have  been  convened  by  our  sugar exporters  and  there  has  been  a  general  consensus  on  import  of  Indian  sugar  by  Chinese agencies. China's import quota of sugar for 2018 has been exhausted, and actual exports from India could commence,upon announcement of new quota for 2019 by China.

(d):          Department  of  Statistics  &  Information  Management,  RBI  does  not  have  required information on the estimated quantum of foreign exchange earned during the last three years and the current year.

(e): Government of India has been taking continuous and sustained steps to bridge the trade deficit  by  lowering  trade  barriers  for  Indian  exports  to  China.  During  the11th  session  of India-China Joint Group on Economic Relations(JEG) held in New Delhi on 26 March 2018, the  Trade  Ministers  of  two  countries  agreed  to  increasing  bilateral  trade  between  the  two countries in a more balanced and sustainable manner. In this regard various meetings have been held with Chinese counterparts as a part of our ongoing efforts to obtain market access for  various  Indian  agricultural  products,  animal  feeds,  oil  seeds,  milk  and  milk  products, pharmaceutical products etc. in light of the potential of these products/services in the Chinese market. Various protocols have been signed to facilitate export of Indian rice, rapeseed meal and fishmeal - fish oil from India to China.

The  Government  of  India  has  also  taken  various  measures  to  extend  support  to  exporters through  organising  Buyers  Seller  meetings  between  potential  Chinese  importers  and  India exporters  to  increase  export  of  sugar,  oil  meals,  Indian  rice  and  tea.  In  addition,  Indian exporters  are  encouraged  to  participate  in  major  trade  fairs  in  China  to  showcase  Indian products.

*****

(ANNEX-I)

| Top 50 (based on 2017-18 data) Principal Commodity wise import to China   | Top 50 (based on 2017-18 data) Principal Commodity wise import to China   | Top 50 (based on 2017-18 data) Principal Commodity wise import to China   | Top 50 (based on 2017-18 data) Principal Commodity wise import to China   | Top 50 (based on 2017-18 data) Principal Commodity wise import to China   | Top 50 (based on 2017-18 data) Principal Commodity wise import to China   |
|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|
| Principal Commodity                                                       | 2015-16                                                                   | 2016-17                                                                   | 2017-18                                                                   | Apr-Oct 2017                                                              | Apr-Oct 2018*                                                             |
|                                                                           | Val in million USD                                                        | Val in million USD                                                        | Val in million USD                                                        | Val in million USD                                                        | Val in million USD                                                        |
| TELECOM INSTRUMENTS                                                       | 10093.36                                                                  | 11307.83                                                                  | 15594.19                                                                  | 9014.32                                                                   | 5171.09                                                                   |
| ELECTRONICS COMPONENTS                                                    | 3514.48                                                                   | 4440.91                                                                   | 5496.19                                                                   | 3020.90                                                                   | 3252.76                                                                   |
| COMPUTER HARDWARE, PERIPHERALS                                            | 4413.69                                                                   | 4071.73                                                                   | 5026.08                                                                   | 2879.08                                                                   | 2537.43                                                                   |
| INDL. MACHNRY FOR DAIRY ETC                                               | 2866.60                                                                   | 2839.89                                                                   | 3418.77                                                                   | 1934.19                                                                   | 2143.36                                                                   |
| ORGANIC CHEMICALS                                                         | 2416.74                                                                   | 2187.94                                                                   | 2931.53                                                                   | 1578.05                                                                   | 2175.76                                                                   |
| ELECTRONICS INSTRUMENTS                                                   | 1926.26                                                                   | 2134.42                                                                   | 2531.12                                                                   | 1505.12                                                                   | 1410.48                                                                   |
| ELECTRIC MACHINERY AND EQUIPME                                            | 2170.23                                                                   | 2036.72                                                                   | 2463.32                                                                   | 1344.04                                                                   | 1542.57                                                                   |
| CONSUMER ELECTRONICS                                                      | 2204.17                                                                   | 2151.60                                                                   | 2362.31                                                                   | 1501.28                                                                   | 1382.56                                                                   |
| RESIDUL CHEMICL AND ALLED PROD                                            | 1458.94                                                                   | 1636.77                                                                   | 2168.78                                                                   | 1181.00                                                                   | 1535.75                                                                   |
| BULK DRUGS, DRUG INTERMEDIATES                                            | 2120.15                                                                   | 1826.34                                                                   | 2055.94                                                                   | 1143.89                                                                   | 1504.47                                                                   |
| AC, REFRIGERATION MACHNRY ETC                                             | 1045.79                                                                   | 1249.52                                                                   | 1638.61                                                                   | 772.21                                                                    | 936.31                                                                    |
| IRON AND STEEL                                                            | 2359.26                                                                   | 1346.71                                                                   | 1621.05                                                                   | 1096.58                                                                   | 829.67                                                                    |
| PRODUCTS OF IRON AND STEEL                                                | 1181.85                                                                   | 1229.86                                                                   | 1469.68                                                                   | 829.48                                                                    | 1012.71                                                                   |
| SHIP, BOAT AND FLOATING STRUCT                                            | 1264.90                                                                   | 1454.44                                                                   | 1208.98                                                                   | 350.60                                                                    | 66.30                                                                     |
| PLASTIC RAW MATERIALS                                                     | 823.53                                                                    | 897.57                                                                    | 1178.04                                                                   | 681.53                                                                    | 762.80                                                                    |
| AUTO COMPONENTS/PARTS                                                     | 898.78                                                                    | 868.58                                                                    | 1164.41                                                                   | 627.71                                                                    | 746.42                                                                    |
| FERTILEZERS MANUFACTURED                                                  | 3261.92                                                                   | 1244.16                                                                   | 1065.35                                                                   | 836.33                                                                    | 1089.74                                                                   |
| OTHER MISC. ENGINEERING ITEMS                                             | 751.06                                                                    | 902.05                                                                    | 1064.11                                                                   | 612.50                                                                    | 592.46                                                                    |
| ACCUMULATORS AND BATTERIES                                                | 510.49                                                                    | 608.78                                                                    | 947.88                                                                    | 527.00                                                                    | 608.94                                                                    |
| MANMADE YARN,FABRICS,MADEUPS                                              | 853.93                                                                    | 798.59                                                                    | 938.28                                                                    | 540.32                                                                    | 605.77                                                                    |
| ALUMINIUM, PRODUCTS OF ALUMINM                                            | 717.59                                                                    | 696.90                                                                    | 794.39                                                                    | 444.55                                                                    | 711.88                                                                    |
| MACHINE TOOLS                                                             | 431.70                                                                    | 544.89                                                                    | 748.19                                                                    | 386.02                                                                    | 481.87                                                                    |
| AGRO CHEMICALS                                                            | 332.65                                                                    | 506.10                                                                    | 726.69                                                                    | 430.71                                                                    | 464.83                                                                    |
| OTHER PLASTIC ITEMS                                                       | 477.81                                                                    | 516.24                                                                    | 684.11                                                                    | 403.70                                                                    | 367.44                                                                    |
| CRANES, LIFTS AND WINCHES                                                 | 410.30                                                                    | 692.05                                                                    | 671.90                                                                    | 444.13                                                                    | 415.26                                                                    |
| OTH TXTL YRN, FBRIC MDUP ARTCL                                            | 487.19                                                                    | 432.17                                                                    | 670.85                                                                    | 387.37                                                                    | 357.01                                                                    |
| COAL,COKE AND BRIQUITTES ETC                                              | 364.40                                                                    | 402.79                                                                    | 642.52                                                                    | 367.03                                                                    | 491.80                                                                    |
| PROJECT GOODS                                                             | 994.11                                                                    | 763.00                                                                    | 609.54                                                                    | 374.93                                                                    | 331.97                                                                    |
| GLASS AND GLASSWARE                                                       | 406.91                                                                    | 478.34                                                                    | 607.66                                                                    | 359.79                                                                    | 409.45                                                                    |
| MOULDED AND EXTRUDED GOODS                                                | 484.41                                                                    | 537.77                                                                    | 607.32                                                                    | 343.70                                                                    | 327.59                                                                    |
| PAPER, PAPER BOARD AND PRODUCT                                            | 362.11                                                                    | 434.50                                                                    | 602.47                                                                    | 369.39                                                                    | 310.84                                                                    |
| OTH NON FEROUS METAL AND PRODC                                            | 399.31                                                                    | 445.35                                                                    | 587.21                                                                    | 331.35                                                                    | 352.62                                                                    |
| OTHER CONSTRUCTION MACHINERY                                              | 352.71                                                                    | 416.10                                                                    | 580.49                                                                    | 299.82                                                                    | 419.40                                                                    |
| HANDCRFS(EXCL.HANDMADE CRPTS)                                             | 412.54                                                                    | 401.23                                                                    | 555.35                                                                    | 233.62                                                                    | 261.14                                                                    |

| INORGANIC CHEMICALS               | 502.39       | 428.99      | 531.33       | 287.37       | 469.14         |
|-----------------------------------|--------------|-------------|--------------|--------------|----------------|
| MEDICAL AND SCIENTIFIC INSTRUM    | 342.62       | 388.01      | 510.51       | 274.66       | 295.01         |
| CERAMICS AND ALLIED PRODUCTS      | 576.54       | 379.57      | 476.25       | 272.21       | 262.72         |
| PLASTC SHT, FILM, PLTS ETC        | 294.29       | 318.72      | 476.02       | 251.67       | 466.45         |
| OTHER MISCELLAENIOUS CHEMICALS    | 393.44       | 338.58      | 420.87       | 232.64       | 340.56         |
| IC ENGINES AND PARTS              | 176.18       | 265.22      | 397.18       | 232.27       | 203.15         |
| PAINT, VARNISH AND ALLID PRODC    | 227.37       | 245.61      | 360.04       | 197.33       | 226.05         |
| SILVER                            | 384.51       | 440.69      | 326.31       | 238.10       | 241.38         |
| PLYWOOD AND ALLIED PRODUCTS       | 272.54       | 254.95      | 324.45       | 195.53       | 160.29         |
| PETROLEUM PRODUCTS                | 243.08       | 213.11      | 313.84       | 169.66       | 168.15         |
| OPTICAL ITEMS (INCL.LENS ETC)     | 135.20       | 137.69      | 296.79       | 219.37       | 161.34         |
| ATM, INJCTNG MLDING MCHNRY ETC    | 215.05       | 240.20      | 292.90       | 170.14       | 170.66         |
| HND TOOL, CTTNG TOOL OF METALS    | 213.76       | 182.63      | 266.76       | 143.40       | 176.05         |
| FOOTWEAR OF RUBBER/CANVAS ETC.    | 147.14       | 167.84      | 256.03       | 148.03       | 123.28         |
| COPPER AND PRDCTS MADE OF COPR    | 185.58       | 197.24      | 245.60       | 142.39       | 144.25         |
| PUMPS OF ALL TYPES                | 147.66       | 159.71      | 238.74       | 142.13       | 146.82         |
| Total Top 50                      | 57227.20     | 56860.62    | 71166.90     | 40469.14     | 39365.77       |
| Grand Total                       | 61707.9534 6 | 61283.03478 | 76380.696 85 | 43455.9030 5 | 42584.73       |
| *Data for 2018-19 is provisional. |              |             |              |              | (SOURCE:DGCIS) |

|                                                                         |                                                                         |                                                                         |                                                                         |                                                                         | (ANNEX-II)                                                              |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
| Top 50 (based on 2017-18 data) Principal Commodity wise export to China | Top 50 (based on 2017-18 data) Principal Commodity wise export to China | Top 50 (based on 2017-18 data) Principal Commodity wise export to China | Top 50 (based on 2017-18 data) Principal Commodity wise export to China | Top 50 (based on 2017-18 data) Principal Commodity wise export to China | Top 50 (based on 2017-18 data) Principal Commodity wise export to China |
| Principal Commodity                                                     | 2015-16                                                                 | 2016-17                                                                 | 2017-18                                                                 | Apr- Oct'2017                                                           | Apr- Oct'2018                                                           |
|                                                                         | Val in million USD                                                      | Val in million USD                                                      | Val in million USD                                                      | Val in million USD                                                      | Val in million USD                                                      |
| ORGANIC CHEMICALS                                                       | 472.34                                                                  | 452.81                                                                  | 1559.63                                                                 | 723.20                                                                  | 1434.61                                                                 |
| COPPER AND PRDCTS MADE OF COPR                                          | 1144.35                                                                 | 702.00                                                                  | 1548.51                                                                 | 784.25                                                                  | 97.22                                                                   |
| PETROLEUM PRODUCTS                                                      | 636.11                                                                  | 789.43                                                                  | 1507.00                                                                 | 589.14                                                                  | 1893.35                                                                 |
| IRON ORE                                                                | 155.28                                                                  | 1449.60                                                                 | 1091.23                                                                 | 528.30                                                                  | 457.92                                                                  |
| COTTON YARN                                                             | 1474.51                                                                 | 1045.65                                                                 | 858.84                                                                  | 409.33                                                                  | 808.96                                                                  |
| PLASTIC RAW MATERIALS                                                   | 261.13                                                                  | 244.68                                                                  | 494.87                                                                  | 167.67                                                                  | 532.73                                                                  |
| GRANIT, NATRL STONE AND PRODCT                                          | 408.59                                                                  | 411.59                                                                  | 461.60                                                                  | 267.65                                                                  | 254.67                                                                  |
| CASTOR OIL                                                              | 276.65                                                                  | 264.93                                                                  | 424.30                                                                  | 260.44                                                                  | 208.49                                                                  |
| IRON AND STEEL                                                          | 145.60                                                                  | 344.84                                                                  | 324.12                                                                  | 182.94                                                                  | 139.28                                                                  |
| SPICES                                                                  | 171.47                                                                  | 193.24                                                                  | 314.69                                                                  | 188.95                                                                  | 191.72                                                                  |
| ZINC AND PRODUCTS MADE OF ZINC                                          | 20.06                                                                   | 46.53                                                                   | 288.40                                                                  | 153.13                                                                  | 40.85                                                                   |
| ELECTRIC MACHINERY AND EQUIPME                                          | 96.65                                                                   | 111.23                                                                  | 250.67                                                                  | 98.07                                                                   | 198.28                                                                  |
| PEARL, PRECS, SEMIPRECS STONES                                          | 107.64                                                                  | 140.66                                                                  | 218.65                                                                  | 133.79                                                                  | 147.46                                                                  |
| ELECTRONICS INSTRUMENTS                                                 | 151.60                                                                  | 231.08                                                                  | 211.08                                                                  | 122.53                                                                  | 151.29                                                                  |
| RESIDUL CHEMICL AND ALLED                                               | 146.21                                                                  | 206.99                                                                  | 209.27                                                                  | 109.48                                                                  | 135.21                                                                  |

| PROD                           |         |          |          |         |                |
|--------------------------------|---------|----------|----------|---------|----------------|
| BULK MINERALS AND ORES         | 347.60  | 197.60   | 207.86   | 124.37  | 128.34         |
| TELECOM INSTRUMENTS            | 57.75   | 82.80    | 166.19   | 102.05  | 83.52          |
| MARINE PRODUCTS                | 149.71  | 137.46   | 164.07   | 74.49   | 288.81         |
| HUMAN HAIR, PRODUCTS THEREO    | 159.74  | 173.93   | 157.34   | 86.36   | 69.24          |
| BULK DRUGS, DRUG INTERMEDIATES | 113.08  | 103.85   | 154.01   | 88.55   | 88.05          |
| IC ENGINES AND PARTS           | 94.50   | 154.41   | 141.59   | 87.81   | 90.93          |
| INDL. MACHNRY FOR DAIRY ETC    | 106.08  | 100.19   | 139.87   | 70.50   | 95.98          |
| COTTON RAW INCLD. WASTE        | 196.19  | 281.84   | 132.97   | 28.41   | 144.03         |
| DYES                           | 70.06   | 86.79    | 126.77   | 65.21   | 114.87         |
| ELECTRONICS COMPONENTS         | 83.21   | 103.08   | 117.17   | 76.57   | 65.06          |
| COIR AND COIR MANUFACTURES     | 76.11   | 92.50    | 117.12   | 80.76   | 65.35          |
| FINISHED LEATHER               | 109.47  | 109.25   | 100.84   | 61.20   | 58.89          |
| AUTO COMPONENTS/PARTS          | 67.12   | 70.43    | 79.07    | 41.52   | 43.52          |
| PROCESSED MINERALS             | 201.02  | 102.65   | 71.49    | 47.55   | 14.95          |
| AGRO CHEMICALS                 | 60.83   | 60.98    | 69.33    | 29.96   | 38.81          |
| ATM, INJCTNG MLDING MCHNRY ETC | 56.19   | 54.44    | 68.78    | 37.67   | 47.75          |
| DYE INTERMEDIATES              | 56.47   | 47.62    | 63.05    | 34.36   | 67.87          |
| PAINT, VARNISH AND ALLID PRODC | 14.79   | 44.55    | 62.38    | 31.93   | 35.41          |
| INORGANIC CHEMICALS            | 21.72   | 40.17    | 61.03    | 35.55   | 34.78          |
| PRODUCTS OF IRON AND STEEL     | 62.46   | 68.91    | 59.71    | 37.79   | 36.95          |
| RMG COTTON INCL ACCESSORIES    | 53.90   | 52.73    | 58.51    | 28.20   | 38.72          |
| SULPHER, UNROASTED IRON PYRITE | 61.47   | 43.14    | 58.28    | 26.81   | 34.87          |
| OTHER MISC. ENGINEERING ITEMS  | 60.81   | 52.76    | 57.37    | 33.10   | 36.34          |
| OTHR RUBBER PRODCT EXCPT FOOTW | 28.85   | 29.61    | 49.98    | 24.81   | 38.77          |
| MANMADE YARN,FABRICS,MADEUPS   | 34.90   | 36.34    | 49.65    | 28.34   | 32.49          |
| MICA                           | 32.99   | 36.74    | 47.96    | 24.90   | 32.26          |
| FOOTWEAR OF LEATHER            | 30.19   | 35.13    | 41.95    | 26.64   | 23.66          |
| MEDICAL AND SCIENTIFIC INSTRUM | 18.71   | 24.93    | 40.58    | 18.75   | 33.62          |
| GUERGAM MEAL                   | 45.59   | 30.98    | 38.63    | 16.93   | 35.81          |
| MANMADE STAPLE FIBRE           | 31.49   | 56.23    | 38.19    | 27.41   | 34.33          |
| COTTON FABRICS, MADEUPS ETC.   | 37.88   | 34.89    | 35.98    | 22.57   | 18.49          |
| MACHINE TOOLS                  | 26.13   | 23.95    | 35.45    | 22.20   | 14.99          |
| AIRCRAFT, SPACECRAFT AND PARTS | 17.40   | 43.38    | 32.72    | 24.76   | 10.48          |
| PLASTC SHT, FILM, PLTS ETC     | 28.64   | 30.31    | 32.17    | 18.17   | 20.68          |
| OTHERWOODANDWOOD PRODUCTS      | 63.31   | 34.73    | 30.93    | 16.32   | 18.56          |
| Total Top 50                   | 8344.54 | 9314.55  | 12671.83 | 6321.41 | 8729.24        |
| Grand Total                    | 9014.55 | 10172.41 | 13334.42 | 6688.63 | 9306.10        |
|                                |         |          |          |         | (SOURCE:DGCIS) |

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