Did “Boycott China” work? India’s exports to China increase in 2020
Trade deficit with China has declined 19.39 per cent from USD 56.95 billion in 2019 to USD 45.91 billion in 2020 as the country’s imports from the neighbouring country contracted 10.87 per cent to USD 66.78 billion from USD 74.92 billion in 2019, the data showed.
By IAR Desk
Remember those days of “Boycott China”? When the call reverbated across India? . ‘Boycott Chinese goods’ was trending on social media, and messages and videos describing how much the Chinese skim Indians, and why we should boycott Chinese goods, were flying thick and fast throughout social media channels. The Confederation of All India Traders (CAIT), a powerful union of 70 million local traders, had even decided to step up its nationwide movement against Chinese goods.
Well it seems those days are over.
Boycotting China, it seems, is easier said than done. And why indeed?
China is India’s second-largest trading partner after the US, and bilateral trade standing at almost $93 billion. In July when the India-China faceoff I Eastern Ladakh was at its peak the Trade Promotion Council of India had warned that an immediate boycott of Chinese goods and import substitution is unrealistic, given that many industries are dependent on Chinese imports. A sudden boycott would further disrupt supply chains already disrupted by COVID-19, the final brunt of which will be borne by ordinary consumers.
Thankfully, the current disengagement between the two neighbours in the Line of Actual Control gas brought with it some good news on the trade front too.
India’s exports to China has increased by 16.15 per cent to USD 20.87 billion in 2020 from USD 17.9 billion in the previous year on account of healthy growth in the shipments of ores, iron and steel, aluminum and copper, according to the data of the commerce ministry.
Trade deficit with China has declined 19.39 per cent from USD 56.95 billion in 2019 to USD 45.91 billion in 2020 as the country’s imports from the neighbouring country contracted 10.87 per cent to USD 66.78 billion from USD 74.92 billion in 2019, the Press Trust of India has reported.
The bilateral trade in 2020 decreased by 5.64 per cent to 87.65 billion compared to USD 92.89 billion in the previous year.
This is good news as bilateral trade between India and China is skewed in favour of China with India’s trade deficit at $53.56 billion. On the other hand there had been projections of plummeting Indian exports to China, which would have further widened India’s trade deficit with China.
A healthy growth in exports was witnessed in the agricultural sector, which includes cane sugar, soybean oil, and vegetables fats and oils. At the same exports of mangoes, fish oil, tea, and fresh grapes declined.
Imports of goods including electrical machinery and equipment, boilers, machinery and mechanical appliances, plastics and related articles, articles of iron and steel, furniture, fertilizers, vehicle parts and accessories, toys and sports equipment, inorganic chemicals and ceramic products have recorded a decline.
