Synopsis
India’s trade deficit with China in 2021-22 has reduced to 83.8% from 86.7% in 2014-15 due to fewer commodities and services exhibiting trade deficit, according to Minister of State for Commerce and Industry Anupriya Patel. The major commodities where India has a trade deficit with China include electronic components, computer hardware, telecom instruments, industrial machinery for dairy, and organic chemicals.
The major commodities in which India has a trade deficit with China include electronic components, computer hardware, telecom instruments, industrial machinery for dairy and organic chemicals, Parliament was informed on Wednesday. Some of the services in which India has a trade deficit with China include construction, telecommunication, computer and information services, maintenance and repair services, Minister of State for Commerce and Industry Anupriya Patel said in a written reply to the Lok Sabha.
She said the commodities exhibiting trade deficit with China constituted 86.7 per cent of the total trade in 2014-15, which has reduced to 83.8 per cent of the total trade with China in 2021-22.
“Similarly, the services exhibiting trade deficit with China contributed 30.3 per cent to the total trade with China in 2014, which has reduced to 18.5 per cent in 2019,” she said.
Replying to a separate question, she said India has signed 13 Free Trade Agreements (FTAs) with its trading partners including the UAE, Australia and Singapore.
“India is currently negotiating FTAs with the United Kingdom, the European Union and Canada. However, it is difficult to predict the timeline for completion of negotiations, as agreements are entered into when negotiating countries are satisfied with the outcome,” she added.
In another reply, Patel said that as announced in Union Budget 2022-23, Special Economic Zones Act, 2005 will be replaced with a new legislation that will enable states to become partners in Development of Enterprise and Service Hubs.
“The legislation is currently under inter-ministerial consultations,” she said.
Replying to a question on startups, Minister of State for Commerce and Industry Som Parkash said that since the launch of Startup India initiative in 2016, Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 92,683 entities as startups as on February 28.
As at February-end this year, Rs 537.25 crore has been approved to 148 incubators by the Experts Advisory Committee under Startup India Seed Fund Scheme and Rs 235.25 crore has been disbursed to the approved incubators.
Source: https://economictimes.indiatimes.com/news/economy/foreign-trade/india-has-trade-deficit-with-china-in-electronic-components-computer-hardware/articleshow/99267323.cms?from=mdr