Trade deficit with China crossed $71 billion
What’s in the news?
- India’s trade deficit with China has touched $71.56 billion in the first 10 months of 2022-23, just $1.7 billion short of the record high of $73.31 billion in 2021-22.
- The trade deficit with China has decreased progressively every year from 2017-18 to 2020-21. It increased in 2021-22 compared to 2020-21.
- Most of the goods imported from China are capital goods, intermediate goods and raw materials and are used for meeting the demand of fast expanding sectors like electronics, telecom and power.
- India’s dependence on imports in these categories is largely due to the gap between domestic supply and demand.
- Some of the raw materials like Active Pharmaceutical Ingredients (APIs) and drug formulations, auto components, mobile phone parts are also used for making finished products which are also exported out of India.
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