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Despite the significant steps made in the direction of Atmanirbhar Bharat, or self-reliance, and in the aftermath of the galwan standoff. The widening trade deficit is a source of concern for India because it can be used against the country to unbalance its economy by playing the demand-supply game and altering inflation levels. A negative impact on the currency is also seen as a result of the large trade deficit, and it also creates a dependency on China, which could have a rippling effect on India in the future if China experiences an economic crisis. India is dependent on China at a 1:4 ratio, which can be exploited against it during a crisis. As a result, working to minimise the trade imbalance is a top concern.
A Key Notes On India Signs Host Country Agreement With The ITU
Everything you need to know about India In 2021, bilateral trade between China and the United States will exceed 125 billion dollars. In terms of imports, India’s imports from China increased by 46.1 percent to $97.5 billion in 2021, up from $66.7 billion in 2020. In 2019, imports increased by 30.3 percent.
Taking into account the export data, the estimates have also shown a 34.9 percent increase from $20.9 billion in 2020 to $28.1 billion in 2021. India In 2021, China will have a trade deficit. The trade imbalance has risen from $45.9 billion in 2020 to $56.8 billion in 2019 to $69.4 billion in 2021 as a result of rising Chinese imports.
According to the commerce ministry’s data, China was India’s second largest trading partner in the April-November period, followed by the United States. Smartphones, smartphone and vehicle components, communications equipment, plastic and metallic items, active pharmaceutical ingredients, and other chemicals are all imported from China.
Primary items such as iron ore, organic chemicals, cotton, steel, seafood, and engineering goods are sent to China.
India latest agreement with other countries
India’s other major trading partners are the United Arab Emirates, Saudi Arabia, Iraq, and Hong Kong. It has been observed that India’s commerce with other significant trading partners such as the United States, the United Arab Emirates, and Australia grew faster than its trade with China.
India has negotiated FTAs with the United Arab Emirates and Australia. Furthermore, the administration is in the midst of talks with the EU and the United Kingdom. Towards self-sufficiency and Atmanirbhar Bharat. Creating large industrial units or clusters to produce items, such as India’s recent efforts to build a semiconductor chip sector.
For this reason, India has placed anti-dumping tariffs on five Chinese imports, including aluminium goods and chemicals, which would shield domestic businesses from competition for the next five years. Tougher FDI restrictions, requiring the approval of the federal government for any FDI in India enterprises from any neighbouring country. This will aid in averting Chinese takeovers once the economy recovers.
India Australia Interim Trade Agreement
Bilateral trade between the two countries exceeded USD 12.5 billion in Fiscal Year (FY) 21, and it has already surpassed USD 17.7 billion in the first ten months of Fiscal Year (FY) 22. India bought products worth over USD 12.1 billion from Australia in the first ten months of the fiscal year and exported items worth around USD 5.6 billion.
Australia’s largest imports are coal, gold, and liquefied natural gas, whereas India’s top exports are diesel, gasoline, and gems and jewellery. The accord with Australia is intended to boost mining, pharmaceuticals, health, education, renewables, railroads, gems and jewellery, tourism, defence, and textiles.
India is anticipated to seek improved visa access to Australia for both students and professionals. Australia is expected to seek for wines and agricultural products that are not produced on a large scale in India.
List Of Treaties Signed By India With Other Countries In 2020
MoU with Argentina
MoU with Colombia
Agreement on Economic Cooperation between India and Finland
Agreement on SAARC Preferential Trading Arrangement (SAPTA)
Agreement on South Asia Free Trade Area SAFTA
Asia Pacific Trade Agreement APTA
Conclusion
In the past year, India’s commerce with China has increased by 44 percent. There has been a 46 percent increase in imports, while exports have increased by 35 percent. When it comes to iron ore, organic compounds, cotton, steel, seafood, and technical items, the list goes on and on. India is dependent on China at a 1:4 ratio, which may be utilised to strangle India during a crisis. As a result, working to minimise the trade imbalance is a top concern. As a result, achieving self-sufficiency in India is critical.
