Published: 6th Jul, 2020
India’s trade deficit with China fell to $48.66 billion in 2019-20 on account of the decline in imports from the neighbouring country
- India’s trade deficit with China fell to $48.66 billion in 2019-20 on account of the decline in imports from the neighbouring country
- The trade deficit stood at $53.56 billion in 2018-19 and $63 billion in 2017-18.
- China accounts for about 14 per cent of India’s imports and is a major supplier for sectors like mobile phones, telecom, power, plastic toys, and critical pharma ingredients.
- Foreign Direct Investment (FDI) from China in India has dipped to $163.78 million in 2019-20 from $229 million in the previous fiscal, according to the data.
What is a trade deficit?
- A trade deficit is an amount by which the cost of a country's importsexceeds its exports.
- It is one way of measuring international trade, and it's also called a negative balance of trade.
- This deficit occurs when a country does not produce everything it needs and borrows from foreign states to pay for the imports. That's called the current account deficit.
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