India's focus should not be on the overall trade deficit with China, but on reducing dependence on imports of some important items. NITI Aayog Vice Chairman Suman Berry has said this on Sunday. According to Berry, there is a need to diversify into other sources of supply for key raw materials, including the supply chain for active pharmaceutical ingredients (APIs) and renewable energy. China is the world's largest producer and exporter of APIs and many Indian companies depend on the import of the material for the production of various drugs.
Trade between India and China remained at a record level
Berry said that India's focus should not be on trade deficit with China. Instead, it should be on reducing our dependence on China for some important things. He was asked what measures India should take to reduce the growing trade deficit with China.
Berry further said that it is unfortunate that in the last seven years, big powers like America and China have chosen trade interdependence as a weapon. According to statistics, trade between India and China is set to touch an all-time high of $135.98 billion in 2022. During this, India's trade deficit with China crossed $100 billion for the first time. He said that India should prepare a sector-wise strategy to reduce the trade deficit with China.
Statistics show that China exported goods worth $118.5 billion to India. This is 21.7 percent more than in 2021. On the other hand, China imported goods worth only $17.48 billion from India. This is 37.9 percent less than in 2021. In this way, India's trade deficit with China has increased to $101.02 billion. While in 2021 it was $ 69.38 billion.
This is the first time India's trade deficit with China has crossed the $100 billion mark. This situation is worrying for India, because India has expressed its concern many times regarding the increasing trade deficit with China.
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