Lok Sabha Question No. 2441 (UNSTARRED), answered on 2016-05-09
Subject: Trade Deficit with other Countries
Ministry: COMMERCE AND INDUSTRY
Asked by: PRATAPRAO GANPATRAO JADHAV, RAM TAHAL CHOUDHARY

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

LOK SABHA UNSTARRED QUESTION NO. 2441 (H) TO BE ANSWERED ON 09 TH   MAY, 2016

## TRADE DEFICIT WITH OTHER COUNTRIES

## 2441 (H). SHRI PRATAPRAO JADHAV:

## SHRI RAM TAHAL CHOUDHARY:

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

- (a) the names of the countries with which India has a trade deficit after 2012 -13, along with the reasons therefor;
- (b) the names of the countries with which India has a trade deficit continuously during the last three year's along with the reasons therefor;
- (c) whether the Government has conducted any study/review in this regard; and
- (d) if so, the details and the findings thereof and if not, the reasons therefor?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

## (a) & (b) :

- (i) Major countries with which India has a trade deficit after 2012-13 are as under:

| China P RP   | Australia   | Russia       | Ukraine    |
|--------------|-------------|--------------|------------|
| Switzerland  | Venezuela   | Angola       | Brazil     |
| Saudi Arab   | Malaysia    | Ghana        | Chile      |
| Indonesia    | Japan       | Thailand     | Sweden     |
| Iraq         | Germany     | South Africa | Colombia   |
| Korea RP     | Kuwait      | Canada       | Azerbaijan |
| Qatar        | Iran        | Taiwan       | Mexico     |
| Nigeria      | Belgium     | Argentina    |            |

Source: DGCI&S

- (ii) Major countries with which India has a trade deficit continuously during the last three years are as under:

| China P RP   | Australia   | Russia   | Chile   |
|--------------|-------------|----------|---------|

| Switzerland   | Venezuela   | Angola       | Sweden     |
|---------------|-------------|--------------|------------|
| Saudi Arab    | Malaysia    | Thailand     | Azerbaijan |
| Indonesia     | Japan       | South Africa |            |
| Iraq          | Germany     | Canada       |            |
| Korea RP      | Kuwait      | Taiwan       |            |
| Qatar         | Iran        | Argentina    |            |
| Nigeria       | Belgium     | Ukraine      |            |

Source: DGCI&S

The country-wise data on quantum and value of exports and imports of the country for the last  three  years  is  available  in  the  CDs  of  DGCI&S  publication  'Monthly  Statistics  of Foreign  Trade  of  India'  Vol.  1  (Exports)  and  Vol.II  (Imports)  for  March  2014,  March 2015  and  February  2016  (latest  available  CD).  These  CDs  are  also  regularly  sent  to Parliament Library by DGCI&S, Kolkata for reference.

- (iii) The  distribution  of  India's  exports  and  imports  across  various  countries  depends  on consumers/  users  preferences  in  India  with  regards  to  India's  imports  and  similar preferences with regards to our exports in the destination countries.

Consequently depending on these preferences and supply position of various commodities across  the  world,  any  country,  including  India,  will  have  a  trade  deficit  with  some countries  and  trade  surplus  with  other  countries.  Generally  India  has  a  deficit  with countries from which commodities constituting major import demand are sourced. These include items like Petroleum Crude, Gold, Diamonds and Fertilizers.

- (iv) the total trade deficit in recent period has been as follows:

Value: USD Billion

| Period                |   Exports |   Imports |   Trade Deficit |
|-----------------------|-----------|-----------|-----------------|
| 2013-14               |    314.41 |    450.2  |         -135.79 |
| 2014-15               |    310.34 |    448.03 |         -137.69 |
| 2015-16 (Provisional) |    262.01 |    380.36 |         -118.35 |

Source: DGCI&S

While the value of Merchandise Trade deficit during 2014-15 has shown slight increase, there is fall of 14% in Trade deficit during 2015-16.

(c) and (d) Need based studies are conducted from time to time in consultation with various stakeholders to shape trade policy and address country specific issues.

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