By Raunak Bhiwal
Despite growing political and military tensions between India and China trade between the two nations reached a historic high of $ 84.4 billion last year.
Tensions between the two have been high due to the China-Pakistan Economic corridor, 73-day Doklam standoff and China blocking India’s entry into the much coveted Nuclear Suppliers Group (NSG). However, these issues seem to have not affected the trade relations between them.
How did it happen?
India has always had a trade deficit with China, however, in 2017, India’s export to China increased by 40%, totalling $ 16.34 billion. Diamonds, copper ore, iron ore, organic chemicals and cotton yarn contributed to the growth in Indian exports. Copper ore export to China saw an enormous growth of 115% reaching $2.15 billion.
India and China are both very important trading partners for each other due to which, issues between the two nations have been solved amicably in the recent past. Trade acts as proxy diplomacy between countries.
Additionally, it is important to note that while figures reveal that exports saw a growth of 40% over the last year, this is an incomplete outlook. In 2014, India’s exports were $ 16.4 billion, however, the figures reduced significantly in the years following. Hence, the word recuperate is more appropriate than growth to describe this change.
What lies ahead?
In 2017, India imposed anti-dumping duties on Chinese products. As a result, China issued warnings to its companies over the risk of investing in India. Since then the situation has improved, evidently with the record high trade figures.
Indian Prime Minister Narendra Modi will visit China in June to participate in the Shanghai Cooperation Organisation (SCO). The new commerce minister of China, set to be appointed shortly is also expected to visit India.
Feature Image Source: Wikimedia Commons
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