by Apparel Resources News-Desk
16-April-2019 | 3 mins read
Is export- import between world’s second top economy China and fastest-growing trillion-dollar and sixth-largest economy, India, is taking a new shape? At least recent data for the period April – February 2019 says so, as the said period recorded an all-time high in exports and sharp decline in imports from China. India’s import from China was of US $ 65.22 billion worth of goods and export of US $ 15.10 billion during this time. Trade balance between the two countries in the year 2017-18 was US $ 63.05 billion in favour of China, which has now shrunk to US $ 50.12 billion (from US $ 57.87 billion for the period April – Feb 2017-18). It is pertinent to mention here that during the same year, Hong Kong’s trade deficit with India — which stood at US $ 3.9 billion in 2017 — turned into a US $ 2.7-billion surplus, on the back of rising exports to India. Combined figures showed India’s trade deficit with Hong Kong and China expanded to US $ 60.1 billion in 2018 from US $ 55.4 billion the year before.
Hong Kong is a founding member of the World Trade Organization (WTO) and even after the 1997 transfer of its sovereignty from Britain to China, it has remained a member of WTO as guaranteed under the ‘one country, two systems’ principle.
Irrespective of this issue, positive thing is regarding the increase of cotton textile export to China. The exports of cotton textiles had contributed to the reduction in trade deficit as export of these items during April-February 2018-19 had increased by 69% (US $ 1,555 million) over the previous year in the similar period (US $ 919.76 million).
Experts strongly believe that the higher exports of cotton textiles including fabrics and made-ups can not only continue to significantly contribute to the reduction of trade imbalance but also lead to attracting investments from the labour-intensive industries shifting out of China.
Dr. K V Srinivasan, Chairman, The Cotton Textile Export Promotion Council (Texprocil) pointed out that export of cotton textiles can increase further if the tariff disadvantage of 3.5% to 10% suffered by India in comparison to Vietnam, Pakistan, Indonesia etc on textile products is addressed by making further special efforts. He has also praised Suresh Prabhu, Minister of Commerce and Industry & Civil Aviation for this path breaking achievement in reducing the trade balance.
Recently, India shared with China a list of 380 products for exports to bridge trade deficit which includes include textiles items too.
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