Trade imbalance with China up 13 times in 5 years

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.