InvestorQ : Has the trade between India and China reduced after the pandemic and the Doklam stand-off?
ishika Banerjee made post

Has the trade between India and China reduced after the pandemic and the Doklam stand-off?

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2 months ago
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Ironically, neither the pandemic nor the Doklam standoff had any impact of reducing Indo-China trade. On the contrary, for calendar year 2021, the Indo-China trade is all set to cross $100 billion. In fact, trade shipments have already crossed $90 billion after 3 quarters, so the full year trade should be well above the $100 billion mark, even if you do a very fundamental extrapolation of full year numbers.

India’s merchandise imports from China surged by a whopping 51.7% to $68.4 billion, while India’s exports to China also rose 42.5% to $21.9 billion in the first 9 months of 2021. Even if you compare with pre-pandemic 2019 period, current Indo-China trade is higher by 29.7%. India exports iron ore and cotton to China plus other raw materials. At the same time, India imports mechanical and electrical machinery in a big way. This contributed to trade deficit.

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