Chinese imports to India rise by 33% in Apr-Jun period
The Dollar Business Bureau
India’s imports from China recorded a sharp surge of 33% during the period April-June this year as compared to the same period in 2016, according to the government data, which shows that there is no impact of the Doklam issue on the trade between the two neighbours.
Even last week, there are reports in Chinese media that the ongoing border standoff between India and China has had no impact on the bilateral trade, and Chinese companies in India also have not seen much impact.
The increase in Chinese imports is due to the appreciation of rupee in the last few months. The rupee has appreciated around 3.7% against Chinese Yuan and 5.5% against US dollar since February. This rise has helped the Indian importers to buy larger volumes of goods at lesser prices, resulting in increased imports.
The largest imports from China are of chemicals, electronics and engineering goods.
India and China have been in a standoff for the last two months in the Doklam plateau region, which is claimed by both Bhutan and Beijing.
China is the largest business partner of India, with a huge trade surplus in its favour.
During the April-June quarter, Chinese goods imports to India were around $18 billion as compared to $13.5 billion in the same period last year.
The rupee appreciation against Chinese Yuan enabled the Indian importers to buy larger volume of goods at cheaper prices, said a report by the State Bank of India.
“We estimate, India on a conservative basis, saved at least $3.9 billion in May 2017 because of stronger Indian rupee,” it said.
Ajay Sahai, Director General, Federation of Indian Exports Organisation (FIEO) said that the business ties between India and China would not be impacted by the current border tension.
However, India continues to worry with the broadening trade deficit with China. In the fiscal of 2016-17, India imported goods worth $61.7 billion from China, whereas it exports were $9.05 billion, resulting in a trade deficit of about $52 billion.