India's trade deficit with China widening continuously: Foreign secretary

Even as trade between India and China continues to expand, it remains 'unbalanced' and is tilted in the favour of China, foreign secretary Harsh Vardhan Shringla said on Thursday.

With a deficit at $47 billion in the first nine months of this year, it the largest deficit India has with any country.

Bilateral trade between India and China during the first nine months of 2021 grew 49 per cent on year to $90 billion. "At this rate, we are likely to attain the highest ever bilateral trade between two countries," Shringla said at a seminar on leveraging China's economy.

Last year, the total trade volume between the two countries was around $88 billion.

"Our trade deficit concerns are twofold – the first, is the actual size of the deficit. Trade deficit for the nine months period stood at $ 47 billion. This is the largest trade deficit we have with any country. Second, is the fact that the imbalance has continuously been widening," he said, adding that there are a number of market access impediments including a whole host of non-tariff barriers, for most of India's agricultural products, as well as the sectors India is competitive in areas such as pharmaceuticals and information technology.

However, India has been flagging concerns regarding the widening deficit and increase in trade barriers at the highest level, he added