In a sign that the Indian government’s efforts to reduce reliance on Chinese imports are succeeding, India’s trade deficit with the East Asian giant has reduced by $10 billion in 2018-19 compared to 2017-18, coming down from $63 billion to $53 billion in the span of a year, reports The Print.
The term trade deficit refers to the gap between the values of exports and imports between two countries.
Commerce and Industry Minister Suresh Prabhu took to Twitter to highlight the good news, stating, “Whopping reduction trade deficit with China. Unprecedented. Exports increased substantially. Result of high level engagement, strategic planning,coordination with stakeholders,market research,sustained efforts,constant monitoring,hand holding with exporters #leadership @narendramodi.”
The rapid reduction in the trade deficit over the previous year is largely due to a massive boost in exports to China, surging by 30 per cent to $17 billion, and a notable contraction in imports, which saw a decline of 9 per cent to $70 billion.
The positive development regarding the trade deficit can be attributed to the Indian government’s efforts to access to domestic markets for locally produced agricultural goods, animal feeds, oil seeds, pharmaceutical goods, etc. Addtionally, more import duties have imposed on Chinese goods.
The trade war between the US and China has also helped, with some Indian exports replacing US goods which have become prohibitively expensive in China.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.