Lok Sabha Question No. 106 (UNSTARRED), answered on 2019-02-04
Subject: Trade Deficit between India and China
Ministry: COMMERCE AND INDUSTRY
Asked by: B.V. NAYAK

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

## LOK SABHA UNSTARRED QUESTION NO. 106 TO BE ANSWERED ON  04 th  FEBRUARY, 2019

## TRADE DEFICIT BETWEEN INDIA AND CHINA

106. SHRI B.V. NAIK:

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

- (a) whether the Government has taken any stringent measures to bridge the gap in trade deficit between India and China;
- (b) if  so,  the  details  thereof and the total value of imports from China during the last three years;
- (c) whether  the  Government  has  chalked  out  any  plan  to  provide  adequate  policy support and facilitation to indigenous industries to combat the dumping of Chinese products in Indian Domestic market;
- (d) if so, the details thereof and the Government's stand on this serious issue; and
- (e) the list of Chinese products, raw and finished goods dumped and dominated in the domestic markets in India?

## ANSWER

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

(a)& (b) : Yes Madam. Government of India has been taking continuous and sustained steps to bridge trade deficit by lowering the trade barriers for Indian exports to China. During the 11th 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 balanced and more sustainable manner. In this regard various meetings  have  been  held  with  Chinese  counterparts  as  a  part  of  ongoing  efforts  to  seek 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.  Also  protocols  have  been  signed  to  facilitate  export  of  Indian  rice, rapeseed meal, fishmeal - fish oil and tobacco leaves from India to China.

The details of the imports from China during 2015-16, 2016-17, 2017-18 & 2018-19 (AprilDecember)are given below: -

| Year                           |   Import (Value in USDMillion) |
|--------------------------------|--------------------------------|
| 2015-16                        |                        61707.9 |
| 2016-17                        |                        61283   |
| 2017-18                        |                        76380.7 |
| 2018-19 (upto December, 2018)* |                        53878.1 |

*Provisional (Source; DGCI&S)

(c) to (e): India has an elaborate and robust legal framework and institutional set up to protect its environment, life and health of its people, plants and animals.  All goods imported into  India  are  subject  to  domestic  laws,  rules,  orders,  regulations,  technical  specifications, environment and safety norms  that  are  notified  from  time  to  time.  The  Government  takes appropriate  action  in  case  goods  imported  from  any  source  are  found  to  violate  these regulations and threaten human, animal or plant life or health.

In  addition,  trade  defence  measures  like  anti-dumping  duty  and  countervailing  duty, safeguard measures are enforced under the prescribed WTO provisions.Directorate General of  Trade  Remedies  (DGTR)  initiates  anti-dumping  investigations  on  the  basis  of  a  duly substantiated  application  filed  by  the  domestic  producer  with  a  primafacie  evidence  of dumping of goods into the country causing injury to the domestic industry. Such applications submitted by domestic industry are processed as per the procedure and within the time limits specified  under  the  Customs  Tariff  Act,  1975  and  the  rules  made  there  under.  DGTR conducts  investigations  and  recommends  imposition  of  duty,  wherever  appropriate,  to  the Department  of  Revenue  by issuing its preliminary/final findings. Acting upon  such recommendations of the DGTR, the Department of Revenue may impose the provisional or definitive duties.

As on 28.01.2019, anti-dumping duty is in force on 99 products imported from China. The sector-wise details of these 99 products are given below:

| S.No.   | Product Category                                |   No. of cases in which duty is in force |
|---------|-------------------------------------------------|------------------------------------------|
| 1.      | Chemical and Petrochemicals                     |                                       40 |
| 2.      | Electrical and electronic items and accessories |                                       05 |
| 3.      | Fibres and Yarn                                 |                                       08 |
| 4.      | Fibre Boards                                    |                                       01 |
| 5.      | Glass and Glassware                             |                                       10 |
| 6.      | Machinery Items                                 |                                        5 |
| 7.      | Pharmaceutical                                  |                                        2 |
| 8.      | Rubber or Plastic products                      |                                        1 |
| 9.      | Steel and other metals                          |                                       11 |
| 10.     | Other Products                                  |                                       16 |
|         | Total                                           |                                       99 |