Press Trust of India / New Delhi Apr 03, 2011, 11:57 IST
India's trade deficit with China has grown 13 times between 2004-05 and 2009-10, whereas the bilateral commerce increased by three-and-a-half times, reflecting a huge advantage which accrued to the neighbouring country.
While India's merchandise trade with China went up from $12.70 billion in 2004-05, the figure reached $42.37 billion in 2009-10.
However, a big imbalance against India accompanied the growing commercial relations between the two countries, according to the latest RBI data.
From $1.48 billion in 2004-05 the trade balance in favour of China grew up to $19.21 billion in 2009-10.
Worried by the trend, the Commerce Ministry has asked the apex industry chambers to help the government devise a comprehensive strategy for a balanced trade with China.
While the official figures are yet to be released, the trade deficit continues to widen and worry the policy makers as also the Indian industry.
In the recent months, imports from China have gone up by a huge 365 per cent in 2010-11, sources said.
After being prodded by the Commerce Ministry, the business chambers have shot off letters to their members seeking suggestions as to how to correct the trade imbalance with China, they added.
One of the major factors responsible for a huge trade balance in favour of China is ever increasing imports, ranging from home decoratives to toys and from bicycles to power plant turbines. The crux of the problem is to prevent imports of items which are being manufactured in our Country. Let us encourage our Industries with technical know how and subsidies to manufacture the items at home with competitive price and quality. Let us also impose higher duty for importing Items available in our Country. After all,the Chinese goods are heavily subsidised by their Government for export. There is no rocket science involved to assess the causes of lopsided trade balance and to suggest the remedial measures. It is obviously the failure of our Central Government over the years resulting in our huge trade deficit with China. Let this be considered as Wake up calls for Ministry of Commerce and Ministry of Finance.
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