India concerned over excessive imports from China

As imports from China have grown to more than double the size of exports from India, New Delhi is concerned over the widening trade gap between the world's two fastest growing economies.    

"It is a matter of concern for many in India that the trade deficit is very large. We export $11 bn  to China...we import 29 bn (dollar) from China," Minister of State for Commerce Jairam Ramesh said at a CII function here.     

During 2007-08, India's major exports to China included iron ore, raw cotton and ores and minerals. Imports comprised of fertilisers, organic chemicals and iron and steel.     

While trade with China is growing at a rapid speed making the neighbouring country as the country's second largest trading partner, after European Union, exports are moving at a much slower pace than imports.    

"India's imports from China have increased over eight-fold since 2001-02, whereas increase in our total imports from the world over was up three-fold," a recent FICCI study said.    

Between January and September (nine months of the calendar 2008), the bilateral trade has reached $42 bn , up 55%, China's Ambassador to India Zhang Yan, who was also present on the occasion, said.    

Ramesh said trade with China accounts for almost eight per cent of India's international trade. On the other hand, Chinese trade with India accounts for less than 0.5% of its global merchandise engagement.
    
"My only regret is that China is very important to India but India is somewhat insignificant as far as China is concerned," Ramesh said yesterday.    

With the US and the European markets slipping into slowdown, China's exports to India may pick up faster face.    

"China will certainly look towards India with bigger ambitions," a senior Commerce Ministry official had said earlier.