India-China trade down by 5.64% in 2020; imports slashed by 10%, exports at all-time high

In the aftermath of the LAC stand-off between India and China, bilateral trade between the two nations decreased by 5.64% Y-o-Y and stood at $87.65 billion in 2020, as per a report. This, compared to the $92.89 billion bilateral trade business between the two in 2019.

India also significantly slashed its imports from China, cutting it down by 10.87% at $66.78 billion compared to $74.92 billion in 2019. On the other hand, Indian exports to China increased by 16.15% from $17.896 billion to reach $20.87 billion in 2020, at an all-time high. Accordingly, trade deficit with China declined by 19.39% from $56.95 billion in 2019 to $45.91 billion.

India 4th largest exporter of iron ore to China

Among the top 15 Indian exports (at HS-2 level), a steep rise was witnessed in 2020 in ores (75.35%), iron and steel (336%), aluminum (2023%) and copper. Exports of iron and steel amounted to $2.53 billion, marking a Y-o-Y increase of 336.44% and making India the fourth largest exporter of iron and steel to China.

Exports of aluminum and its articles registered a massive increase of 2023.12% to reach $640 million, making India the fifth largest exporter in this category to China in 2020 after ranking 21st in 2019.

Among the key agricultural commodities which India had focused on in 2019, including sugar, rice, oil, etc., total exports saw an increase of 58.99% from $125.3 million in 2019 to $199.14 million in 2020. The major contributors to this increase were cane sugar (387.5%), Soyabean oil (3050%), rice (184%) and vegetables fats and oils (415%). Exports of mangoes and fish oil, however, declined dramatically to nil along with tea which declined by 6.94%, and fresh grapes by 24.1%.

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Decline in imports from China

Among the top 15 Chinese exports (at HS-2 level) to India, 2020 saw a decline in electrical machinery and equipment (-4.53%), boilers, machinery and mechanical appliances (-7.68%), plastics and related articles (-21.9%), articles of iron and steel (-22.38%), furniture (-14.73%), fertilizers (-15.15%), vehicle parts and accessories, including rolling stock (-7.62%), toys and sports equipment (-4.44%), iron and steel (-32.27%), glass and glassware(-21.41%), inorganic chemicals (-15.12%), miscellaneous articles of base metals (_23.88%) and ceramic products (-31.25%).

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