Beijing, July 10 (PTI): The bilateral trade between India and China has declined by 3.59% year on year, totalling $36.87 billion in the first five months of this year, denting optimism that the total trade volume may cross $100 billion mark in 2019.
The India-China bilateral trade last year touched a historic high of $95.54 billion, raising hopes that the trade this year could cross the historic $100 billion mark.
The trade deficit in 2018, according to Chinese official data, climbed to $57.86 billion from $51.72 billion in 2017.
As per the latest data released by Chinese customs, the bilateral trade in the first five months of 2019 has declined by 3.59% year on year amounting to $36.87 billion.
In the same period, India’s exports to China declined by 1.62% to reach $7.70 billion while Chinese exports to India decelerated by 4.10% to total $29.17 billion.
In May this year, the bilateral trade declined by a significant 5.04%, totalling $8.18 billion year on year.
India’s exports to China in May 2019 stood at $1.52 billion, decreasing by 7.15%, while Chinese exports have declined by 4.54%, standing at $6.66 billion.After the bilateral trade crossed $95 billion last year which was a historic high, officials in recent months expressed optimism that the bilateral trade for the first time may cross $100 billion. But the trend of decline may make it difficult unless the trade volumes picks up later in the year.
Major growth commodities of India’s export basket in the period January-May 2019 were organic chemicals at 23.56%, cotton 50.73%, plastics 25.48%, fish and crustaceans 394.97%, electrical machinery 33.54%, Iron and steel 39.12% and coffee, tea, mate and spices 654.22%, according to the official data. Export of commodities such as natural earls, precious stones, copper, mineral fuel declined by 29.65%, 89.21, 39.38% respectively from January-May period.
Indian exports of fish and crustaceans, molluscs and other aquatic invertebrates to China continued to show a sharp increase, registering a robust growth of 394.97% from January-May 2019 to reach $392.38 million.
Export of Indian grapes to China grew by 165.28% year-on-year to reach $13.26 million. Export of Indian sugar to China stood at $7.77 million.
India was the largest exporter of coffee, tea, mate and spices to China (46.97% share) with value of $168.42 million.
This was mainly due to the growth in exports to China of spices, having more than 90% share totalling $156.86 million. India was the third largest exporter of fisheries 6.98% share, fifth largest exporter of fresh grapes 2.68% share, and cane and beet sugar to China 2.12% share.
Major commodities of Chinese exports to India were electronic items 26.12%, electrical equipment, organic chemicals, plastics and fertilizers. Import of electrical machinery and equipment have been witnessing decline of more than 20% year-on-year for the last 4 months.
Imports of fertilisers from China showed a sharp increase of 233.17% to reach $512.39 million in January-May, 2019. India remained the largest export destination for Chinese fertilizers.
Among India’s top exporting items to China, exports of fish and crustaceans, molluscs and other aquatic invertebrates sustained a rising momentum.
With an increase of 394.97 %, India overtook Australia and ascended to the fourth largest exporter of fish and crustaceans, molluscs and other aquatic invertebrates to China $392.38 million with a share of 6.57%. Exports of coffee, tea, mate and spices enjoyed robust growth and witnessed a steep increase of 654.22% to reach $168.42 million with a share of 46.97%, securing India as the first largest exporter of coffee, tea, mate and spices to China, according to the data.India’s cotton (including yarn and woven fabric) exports to China showed an increase of 50.73% to reach $837.90 million.
With a market share of 18.19% India was the second largest exporter of cotton to China. Despite a decrease of 29.34%, India was still the second largest exporter of diamonds to China amounting to $808.55 million with a share of 24.63%, just after South Africa.
India was the second largest exporter of salt; sulphur, earths and stone, plastering materials, lime and cement to China amounting to $419.75 million with 12.54% market share.
Agricultural items, exports of other solid residues of soybean oil extraction, retained an increase of 182.36% to reach $0.15 million, although China’s imports from global partners slumped.
India was the second largest exporter of other solid residues of soybean oil extraction to China.
India still ranked the fifth largest exporter of fresh grapes and cane or beet sugar to China. Exports of fresh grapes increased by 165.28% to reach $13.26 million and exports of cane or beet sugar increased by 227.67% to reach $7.77 million.