India China Bilateral Trade - India China Trade Statistics 2016

21 September 2017

India and China are the two most populous countries and fastest growing major economies in the world. They have come to play an increasingly leading role in world economic affairs and posted aggressive growth rates amongst other things. India China trade relations are the most important part of its bilateral relations. India China trade has observed rapid growth in the recent year. Without being affected the massive economic growth of India and China, there is no Free Trade Agreements (FTAs) between these two countries. China is the world’s largest exporting country while India’s exports have been grown after 2009. In recent past years, both India and China have been pursuing FTAs with a variety of countries particularly in Asia. It is reported that no progress has been made towards the signing an FTA between India and China. As China has gained a large footprint in international trade and India’s domestic industry has declared notes of caution on several incidents over a possible FTA with China.

See Here India China Bilateral Trade Relations – Infographic

After the implementation of GST in India, the new rates of Custom Duty will be applicable for the goods which are entering into India from China. The import duty on Chinese products is increased for Indian importers. However, it is beneficial for Indian domestic producers and it is assumed that India imports from China will be decreased. In this article, we are discussing bilateral trade between India and China, India exports to China, India imports from China and Sample data of India China bilateral trade statistics.

India China Bilateral Trade

China trades as much as five times more than what India does. China has emerged as an exports driven economy with its growth rate of exports beating that of its imports. India’s export growth rate is still covering behind its import growth rates. More than half of China exports come from final processing goods and assembly of goods while India’s exports are primarily raw material and labour oriented with items such as mineral fuels and precious stones. China is India’s largest trading partner with bilateral trade at USD 69.39 billion (USD 69399176 thousand) in 2016, but it is heavily tilted in favour of China. India exports to China recorded USD 8916073 thousand in 2016 while India imports from China recorded 60483103 thousand during the same period.

India China trade has a marked difference with India importing three times as much as it exports to China. China exports to India have been growing at a rate than overall Chinese exports as well as total Indian imports. China is extending its business to the Indian market at a much quicker pace than any of its other export destinations. It is important to analyse the potential effects of an FTA with China on India, a reduction of trade barriers could result in mutual benefit.

India China Trade: India Exports to China

Cotton, ores and organic chemicals are the most exporting items from India to China. As per the India China bilateral trade statistics, India exports to China is much lower than India imports from China. India exports to China is declined by 14% between 2012 and 2016. However, the share of China in India exports recorded 3% in 2016. India exports of cotton to China worth USD 1263291 thousand registered in 2016 which is the top commodity exported to China. According to India China trade statistics, India exports of cotton to China is down by 26% from 2012 to 2016.

The HS code 26 includes ores, slag and ash. India did ores export business from China with the value of USD 1166195 thousand during the year 2016. The sales of this product to China is also declined by 26% during the period of 2012-2016. While, India exports of product HS code 26 to China is 89% of total export value generated from this product.

Organic chemical is third largest product of India exported to China. It comes under HS code 29 and recorded USD 785590 thousand from India exports to China. The growth value is declined by 7% for this product during 2012-2016. Refer the below table to check the top exports from India to China.

*Above stats are based on 2016 report

India China Trade: India Imports from China

China is the largest import partner of India. India imports from China worth is seven times of India exports to China. Electronics, machinery and organic chemicals are the most importing commodities from China. India imports of electronics items from China has been increased by 13% between 2012 and 2016 and recorded worth USD 20871193 thousand during the year 2016. This product come under HS code 85 which includes electrical machinery and equipment and parts thereof, sound recorders and reproducers and other electronics items.

Machinery, mechanical appliances, nuclear reactors, boilers and parts thereof come under HS code 84. India imports of machinery items from China recorded USD 10728064 thousand during the year 2016. India imports from China of machinery has been raised by 2% between 2012 and 2016.

Organic chemical is one of the largest commodities of India China bilateral trade. India imports of organic chemicals from China recorded USD 5585553 thousand in 2016 and it has been increased by 6% during 2012-2016. Go through the following table to check the top India imports from China.

*Above stats are based on 2016 report

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Here, we are providing the sample of India imports from China. It will help you to analyse the India China trade relations and will give you a fair idea about the activities of trading companies. Our trade report covers the following data fields which are given in the sample below.

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