After the US imposed heavy tariffs, China has started dumping its goods in India. Since the US has increased the tariff on China to 245 percent, there is a fear that China can sell more of its goods in India.
Meanwhile, another concern has emerged between the two countries.
The trade difference between India and China in the last financial year has reached a record $ 99.2 billion. The trade deficit with China has increased by about 17%. In the last financial year, it was $ 85.07 billion. That is, India sold much less goods than it bought from China. At the same time, India earned a surplus i.e. profit of $ 41.2 billion in trade with the US. This information has been received from government data.
How was trade with other countries?
India’s trade deficit with the United Arab Emirates (UAE) was $26.79 billion and with Hong Kong it was $13.64 billion. It is worth noting that India also had a trade deficit with countries with which it has free trade agreements such as UAE, Australia, Japan, South Korea and Malaysia.
Why did more goods come from China?
The reason for more imports of goods from China is the increased demand for electronics, electric vehicle batteries, solar cells and certain industrial goods. China dominates these goods. India fears that China is selling these goods in India at cheap prices. This is called ‘dumping’.
US President Donald Trump has talked about imposing heavy taxes on goods coming from China. India is keeping an eye on this. India feels that this can lead China to dump its goods in India. This can happen directly or through a third country. The government has created a monitoring system to prevent dumping. An official said that apart from China, goods coming from Indonesia and Vietnam are also being monitored.