China will once again become India’s largest trading partner in 2020.
China Becomes India’s Largest Trading Partner
25 February 2021 Current Affairs:China will once again become India’s largest trading partner in 2020.The reason is that India still relies on heavy machinery, telecommunications equipment and household appliances imported from China.
♦ Provisional data on trade between the two countries in 2020 is $77.7 billion.
♦ However, compared with the total trade volume of USD 85.5 billion in 2019, the trade volume has declined.
♦ Imports of heavy machinery, etc. have exceeded India’s efforts to reduce its dependence on trade.
♦ Therefore, the bilateral trade balance between India and China will be $40 billion in 2020.
♦ The total imports from China are 58.7 billion U.S. dollars, higher than India’s imports from the United States and the UAE combined.
♦ The data further highlights that despite the interruption in demand during the coronavirus pandemic, India is still able to reduce imports from neighboring Asian countries.