Lok Sabha Question No. 5461 (UNSTARRED), answered on 2023-04-05
Subject: Trade Deficit with China
Ministry: COMMERCE AND INDUSTRY
Asked by: Gaurav Gogoi

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

## LOK SABHA UNSTARRED QUESTION NO. 5461 TO BE ANSWERED ON 05 th  APRIL, 2023

## TRADE DEFICIT WITH CHINA

## 5461. SHRI GAURAV GOGOI:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

- (a) the goods/services and the year-wise details of the trade with China of those goods and services on which India experiences a trade deficit, since the year 2014; and
- (b) the year-wise percentage of goods and services on which India experiences a trade deficit with China out of the total goods and services traded with China, since the year 2014?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a) The major commodities in which India has a trade deficit with China are electronic components, computer hardware & peripherals, telecom instruments, industrial machinery for dairy and organic chemicals. Details of year-wise trade deficit in major commodities is at Annexure-I.

Some  of  the  services in which  India  has a trade deficit with  China  include construction, telecommunication, computer and information services, maintenance and repair services and other commercial services.  Details of year-wise trade deficit in services is at Annexure-II.

- (b) The commodities exhibiting trade deficit with China constituted 86.7% of the total trade in 2014-15, which has reduced to 83.8% of the total trade with China in 2021-22. Similarly, the services exhibiting trade deficit with China contributed 30.3% to the total trade with China in 2014, which has reduced to 18.5% in 2019.

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## Major commodities in which India has a trade deficit with China

(Values in USD million)

|   S no | Principal Commodity Groups         |   2014-15 |   2015-16 |   2016-17 |   2017-18 |   2018-19 |   2019-20 |   2020-21 |   2021-22 |
|--------|------------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
|      1 | Electronics Components             |   1892.71 |   3431.27 |   4337.83 |   5379.02 |   5693.99 |   5958.56 |   6042.41 |  12777.4  |
|      2 | Computer Hardware, Peripherals     |   4317.78 |   4390.89 |   4055.34 |   5007.6  |   3975.11 |   4168.69 |   5283.19 |   8137.58 |
|      3 | Telecom Instruments                |   9177.89 |  10035.6  |  11225    |  15428    |   7279.38 |   5467.09 |   6171.82 |   6455.76 |
|      4 | Indl. Machnry for dairy etc        |   2521.52 |   2760.52 |   2739.7  |   3278.9  |   3668.79 |   3825.08 |   3733.92 |   4905.52 |
|      5 | Organic Chemicals                  |   1856.23 |   1944.4  |   1735.13 |   1371.9  |   1070.63 |   1324.19 |   1988.93 |   4422.4  |
|      6 | Electronics Instruments            |   1667.04 |   1774.66 |   1903.34 |   2320.04 |   2067.1  |   1720.11 |   2388.14 |   3099.22 |
|      7 | Consumer Electronics               |   2012.93 |   2193.82 |   2133.65 |   2349.46 |   2081.91 |   2223.01 |   2366.73 |   3053.83 |
|      8 | Residul Chemicl And Alled Prod     |   1361.14 |   1312.73 |   1429.78 |   1959.51 |   2252.18 |   2119.91 |   2328.99 |   3033.52 |
|      9 | Fertilezers Manufactured           |   3148.68 |   3261.69 |   1244.15 |   1065.1  |   2043.99 |   1808.95 |   1536.38 |   2941.7  |
|     10 | Bulk Drugs, Drug Intermediates     |   1976.94 |   2007.07 |   1722.49 |   1901.93 |   2231.97 |   2104.53 |   2315.6  |   2872.75 |
|     11 | Electric Machinery And Equipments  |   1750.4  |   2073.58 |   1925.49 |   2212.65 |   2342.2  |   2295.07 |   2131.54 |   2850.54 |
|     12 | Plastic Raw Materials              |    616.87 |    562.4  |    652.89 |    683.17 |    302.13 |    467.09 |    277.96 |   2168.79 |
|     13 | Manmade Yarn,Fabrics,Madeups       |    927.82 |    819.03 |    762.25 |    888.63 |    967.52 |   1065.26 |   1123.96 |   1710.89 |
|     14 | Products Of Iron And Steel         |   1310.1  |   1119.39 |   1160.95 |   1409.97 |   1656.99 |   1503.11 |   1252.06 |   1560.43 |
|     15 | Ac, Refrigeration Machnry Etc      |   1064.97 |   1013.17 |   1214.29 |   1609.59 |   1628.57 |   1594.95 |   1228.75 |   1548.4  |
|     16 | Accumulators And Batteries         |    319.33 |    510.19 |    607.19 |    947.54 |   1016.74 |    924.77 |    886.15 |   1404.67 |
|     17 | Other misc. Engineering items      |    619.61 |    690.25 |    849.29 |   1006.74 |    977.12 |    959.32 |    873.68 |   1367.33 |
|     18 | Auto Components/Parts              |    850.93 |    831.66 |    798.15 |   1085.34 |   1164.65 |   1058.67 |   1174.58 |   1309.86 |
|     19 | Medical And Scientific Instruments |    313.65 |    323.91 |    363.08 |    469.93 |    456.38 |    530.76 |    684.53 |   1238.63 |
|     20 | Plastc Sht, Film, Plts Etc         |    232.68 |    265.65 |    288.41 |    443.85 |    701.01 |    760.52 |    710.88 |   1092.65 |
|     21 | Machine Tools                      |    384.11 |    405.57 |    520.94 |    712.74 |    805.46 |    709.95 |    720.71 |   1066.35 |
|     22 | Other Commodities                  |    607.15 |    767.76 |    754.6  |   1044.04 |   1052.46 |    876.42 |    734.28 |    931.3  |
|     23 | Cranes, Lifts And Winches          |    419.01 |    407.34 |    690.95 |    668.23 |    682.53 |    626.67 |    516.52 |    886.14 |
|     24 | Other Construction Machinery       |    325.97 |    339.69 |    402.84 |    560.45 |    696.46 |    543.36 |    611.17 |    833.45 |
|     25 | Oth Non Ferous Metal And Prodc     |    426.72 |    396.25 |    441.78 |    584.57 |    601.79 |    570.74 |    446.32 |    788.7  |
|     26 | Glass And Glassware                |    291.54 |    348.22 |    434.26 |    590.1  |    684.42 |    670.48 |    532.68 |    747.21 |
|     27 | Agro Chemicals                     |    364.78 |    271.82 |    445.12 |    657.36 |    623.39 |    550.6  |    735.9  |    724.43 |
|     28 | Other Miscellaenious Chemicals     |    442.6  |    379.64 |    324.45 |    398.84 |    538.53 |    501.46 |    608.97 |    723.72 |
|     29 | Moulded And Extruded Goods         |    419.12 |    471.06 |    524.51 |    590.93 |    518.27 |    547.36 |    511.36 |    704.8  |
|     30 | Paint, Varnish And Allid Prodc     |    219.51 |    212.58 |    201.06 |    297.66 |    342.76 |    403.09 |    409.23 |    693.62 |

(Source: DGCIS)

## Annexure-I

## Major services in which India has a trade deficit with China

(Values in USD million)

| S. No             | Product/Sector                                            |   2014 |   2015 |   2016 |   2017 |   2018 |   2019 |
|-------------------|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| A (a + b + c + d) | Commercial services                                       |    555 |    389 |    173 |    176 |    -88 |   -132 |
| a                 | Goods-related services                                    |    -25 |    -26 |    -22 |    -29 |    -40 |    -44 |
| a.1               | Manufacturing services on physical inputs owned by others |    -23 |    -21 |    -14 |    -16 |    -18 |    -15 |
| a.2               | Maintenance and repair services n.i.e.                    |     -3 |     -6 |     -8 |    -14 |    -21 |    -27 |
| b                 | Transport                                                 |    515 |    463 |    343 |    303 |    256 |    193 |
| c                 | Travel                                                    |   -104 |   -190 |   -283 |    -20 |    -16 |     56 |
| d                 | Other commercial services                                 |    170 |    143 |    134 |    -78 |   -289 |   -337 |
| d.1               | Construction                                              |    -64 |    -38 |    -51 |   -220 |   -258 |   -258 |
| d.2               | Insurance and pension services                            |     63 |     25 |     10 |      1 |     -5 |     -8 |
| d.3               | Financial services                                        |    -36 |    -14 |    -14 |    -29 |    -10 |    -16 |
| d.4               | Charges for the use of intellectual property n.i.e.       |      4 |      0 |      0 |    -12 |    -15 |    -18 |
| d.5               | Telecommunications, computer, and information services    |    174 |     66 |     16 |     71 |    -56 |    -80 |
| d.6               | Other business services                                   |     26 |    104 |    170 |    111 |     57 |     43 |
| d.7               | Personal, cultural, and recreational services             |      1 |     -1 |      1 |      1 |     -2 |     -1 |
| B                 | Government goods and services n.i.e.                      |     -9 |     -8 |    -13 |    -25 |    -23 |    -21 |

(Note: Latest data available on WTO website upto 2019 only)

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(Source: WTO Database)