![]() Reflecting a sharp US demand slowdown, India’s exports also saw an 8% sequential fall in July to $6.7 billion, from $7.3 billion worth of shipments in June. Imports like active pharmaceutical ingredients and drug formulations provide the Indian pharma industry with raw material for producing finished goods, which are then exported, he said. He added that major items like chemicals used in industrial products imported from China are used in meeting growing demands for industrial inputs. Imports of consumer goods and raw materials constitute a smaller fraction of total imports from China, he said. But these measures have not been effective," he added.Ī commerce department official said while the decline in exports to Beijing is largely due to a change in the direction of India’s exports away from China, the growth in imports from China has largely been driven by imports of capital goods and intermediate goods. “Over the past couple of years, the government has taken several measures to beef up domestic manufacturing capacities, including through the PLI scheme, so that import dependence on China can be reduced. Imports of parts of motor vehicles grew by 62% to $119 million.īiswajit Dhar, a professor at Jawaharlal Nehru University, said import dependence on China is consistently rising as the Indian economy regains its growth momentum. Electronic integrated circuits imports stood at $425 million but were 3.2% lower than the year earlier. Electrical transformer imports grew 22% to $120 million. Refrigerator and air conditioner imports rose by 90% to $49 million during the month. Air and vacuum pump imports rose 82% in July to $111 million. ![]() Major imports from China in July included ‘coke and semi-coke of coal’, antibiotics, fertilizers, silver, parts for motor vehicles, electrical transformers, air and vacuum pumps, printing machinery, and electrical apparatus for line telephone.Ībout $154 million worth of silver was imported from China in July, growing more than 20,000 times when compared with a year ago. Incidentally, India’s imports from China grew by 16% in July from June’s $8.8 billion. In April-July, India’s outbound shipments to China declined by 33% from a year ago. Queries emailed to the ministry of commerce and industry on Wednesday remained unanswered till press time. First, China may be imposing some non-tariff measures and, second, exports from countries with whom China has a trade agreement may have an advantage over our exporters," said Arpita Mukherjee, professor, ICRIER. “Exports to China may have declined for two reasons. Exports declined even on a month-on-month basis. ![]() Meanwhile, the trade deficit with China is widening, with exports to the neighbouring nation contracting 44% to $1.26 billion in July, increasing the trade gap to nearly $9 billion, which is about a third of India’s overall trade deficit during the month. The US, however, remained India’s largest trading partner in the four months ended 31 July, with shipments worth $46.2 billion, more than China’s $40.4 billion. Delhi countered it, saying the US was India’s largest trading partner that year. The department of commerce had earlier contested China’s official data that showed Beijing was India’s largest trading partner in 2021-22. Exports to the US in July grew by 0.41% to $6.78 billion, while imports from China expanded by 45% to $10.2 billion. The growth in trade with China is largely on account of a surge in imports and near-flat growth in exports to the US during the month. ![]()
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