Retaliating though, India says it will continue to correct the burgeoning trade deficit with China..!

NewsBharati    15-Mar-2019
New Delhi, March 15: China’s strategic ties with Pakistan are getting stronger by the day. But ultimately the neighbour nation’s decision to back its iron brother, China is going to somehow attract the trap of economic troubles internationally for itself.

 
But acting robust and responsible, although India ruling out to take retaliatory or unilateral action against China, has conveyed that it will continue its efforts to correct its burgeoning trade deficit with the neighbouring country, China.
China, being India’s largest trading partner, had a trade surplus of $41.2 billion in the nine months to December 2019 on a total bilateral trade of $66.4 billion. “Reducing our balance of trade with China is the most important issue and we will continue to work to correct it in regular course,” said an official in the know of the details in the wake of Boycott Chinese Products trending high on Twitter.
“We can’t take any unilateral action because both India and China are members of the World Trade Organization,” the official said, adding that exporting more to China is the only way out handling to reduce the Balance of Trade within. Global trade norms bar WTO members from imposing country-specific restrictions like customs duties.
According to the statistics of 2017-18, Chinese imports accounted for 16.4% of New Delhi’s total imports while exports to Beijing were only 4.4% of India’s total outward shipment globally. However, India’s exports to China have increased in the first nine months of FY19 to $12.6 billion as against $13.3 billion in the whole of FY18, led by higher shipment of petrochemicals such as mineral fuels, oils and bituminous substances.
The two countries are also negotiating the Regional Comprehensive Economic Partnership (RCEP) trade agreement with 14 other Asia Pacific countries, which is likely to get concluded this year and would lead to India giving duty concessions to at least 80% of Chinese imports over a 20-year period. The two are already members of the Asia Pacific Trade Agreement, stated the statement.