Korean Media: India's Trade Deficit with China Surpasses $100 Billion, Reaching Historical High!
On April 15, South Korean media outlet NEWSPIM published an article stating that India’s trade deficit with China is expected to reach a record high.
According to data from India’s Ministry of Commerce, India’s trade deficit with China is projected to exceed $100 billion for the first time in 2025.
India’s fiscal year runs from April to the following March. From April last year to February this year, India’s total imports from China amounted to $119.5 billion, while its exports to China stood at $17.5 billion. This resulted in a trade deficit of $102 billion between India and China. It is projected that the annual trade deficit will rise to $111 billion by 2025, up from $99.2 billion in the previous fiscal year.
India imports electronic components, batteries, solar modules, machinery, chemical products, and pharmaceutical raw materials from China. Analysis indicates that due to the wide variety of raw materials imported from China, viable alternatives are difficult to find in the short term.
The Global Trade Research Initiative (GTRI), an Indian think tank, assessed that “unless India establishes competitive domestic production capabilities or achieves supply chain diversification, this trade deficit will persist,” adding that “the trade deficit with China will offset the benefits brought by India’s export growth.”
An Indian expert explained: “Although India also manufactures smartphones, China still dominates the market for raw materials and components. China generates higher value-added output.” He further noted: “While India is making progress, it will take more time before it can truly close the gap with China.”
The expert also predicted that “India may relax regulations to allow Chinese companies to produce goods within India instead of importing them from China.”
Original source: toutiao.com/article/1862535732505612/
Disclaimer: The views expressed in this article are those of the author(s) alone.