Lok Sabha Question No. 2291 (UNSTARRED), answered on 2018-12-24
Subject: Trade with China
Ministry: COMMERCE AND INDUSTRY
Asked by: A.P. JITHENDER REDDY

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

## LOK SABHA UNSTARRED QUESTION NO. 2291 TO BE ANSWERED ON 24 th  DECEMBER,2018

## TRADE WITH CHINA

## 2291. SHRI A.P. JITHENDER REDDY:

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

- (a) the details of yearly trade deficit with China since 2014 along with the steps taken/ trade  agreements  signed  to  reduce  trade  deficit  and  the  expected  deficit  post implementation of these steps;
- (b) whether India intends to export upto 2 million tonnes of sugar to China and if so, the details thereof;
- (c) whether China  has already  exhausted  its  import  quota for  this  year and  if  so,  the manner in which the Government is expecting to achieve its export target;
- (d) the details of goods imported in India from China through e-commerce firms since 2014 along  with  the  details  of  products  from  China  to  India  which  are  exempted from being channelized through the customs route;
- (e) whether China Post subsidizes delivery of products shipped to India and if so, the steps taken to protest/counter; and
- (f) the  details  of  cases  registered  where  Chinese  e-commerce  sites  have  misused Foreign  Trade  (D  &  R)  Act  to  export  items  priced  under  Rs.  5,000  to  India  by misusing  identities  of  NRIs  in  West  Asia  along  with  the  details  of  actions  taken thereafter?

## ANSWER

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

- (a):              The  details  of  the  imports  and  exports between India and China during 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 (April to October 2018) are given below: -

|             | Val in billion USD   | Val in billion USD   | Val in billion USD   |
|-------------|----------------------|----------------------|----------------------|
| Period      | Export               | Import               | Trade Deficit        |
| 2014-15     | 11.96                | 60.41                | -48.45               |
| 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'18* | 9.31                 | 42.58                | -33.28               |

*Data for 2018-19 is provisional

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  IndiaChina 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 and fishmeal - fish oil from India to China.

(b) & (c): China usually imports 4-5 Million MT of sugar through their importers, and issues licenses  for  import  in  two  tranches  during  a  year.  The  licenses  issued  in  July  2018  have already  been  consumed  and  the  new  quota  for  2019  imports  by  China  will  enable  Indian sugar exporters to plan their future exports.

(d)to  (f):The  Department of  Revenue mandates border checks and applicable duties  on the goods crossing the border irrespective of the mode of transaction for such inputs. All goods imported into the country have to be channelized through customs. No credible information has been received on any specific subsidy being extended by China Post for delivery to India.

DGFT has not reported any case against Chinese e-commerce sites for misuse of FT (D & R) Act.

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