According to annual figures released by China’s General Administration of Customs (GAC), the total trade volume went to USD 70.59 billion from last year’s USD 65.57, an increase of USD 5.02 billion amid increasing Chinese exports to India.
India-China trade hit all-time high of USD 73.9 billion in 2011 but declined to USD 66.57 billion in 2012 and USD 65.49 billion in 2013.
As per the figures released by Chinese customs, the bilateral trade increased by 7.9 per cent, halting the decline in the last two years.
But India’s trade deficit woes continued as it mounted as high as USD 37.8 billion, making it very difficult to bridge the gap. The leadership of the two countries have fixed a trade target of USD 100 billion for this year.
Chinese exports to India surged to USD 54.2 billion, posting a 12 per cent increase while Indian exports to China decelerated to USD 16.4 billion, a decline of 3.5 per cent. Indian exports totalled to USD 17.04 billion in 2013.
While the trade has increased between the two countries becoming a binding factor in improving relations, the ever- widening deficit has become a major stumbling block, especially for India, whose exports were hit by depreciating rupee and also by declining exports of iron ore which previously was the main stay of Indian exports.
Keeping the gap in mind, India has been pressuring China to open up more in IT, pharmaceuticals and agri products besides stepping up Chinese investments in India to compensate for the trade deficit.
While Chinese leadership has been promising to open up more for Indian trade, especially for pharmaceuticals, a sum of USD 20 billion has been committed for investments in two industrial parks in Gujarat and Maharashtra during the visit of Chinese President Xi Jinping to India in September last year.
India and China are in talks to step up cooperation in plans to modernise Indian Railways which could further increase Chinese investments in the country.
China is also keen to market its high-speed railway technology in India and has committed to do a feasibility study this year for Delhi-Chennai corridor.