Mumbai: India''s trade balance with China has
turned negative during the first seven months of the
year, latest Chinese customs statistics said.
India
suffered a trade deficit of $1.2 billion during the
first seven months of the year while the bilateral trade
volume has touched $13.65 billion during that period,
registering a growth of 26.8 per cent over the corresponding
period last year.
Indian
exports to China during January-July period amounted
to $6.2 billion while imports surged 59.4 per cent to
$7.45 billion.
China
is the country''s second-largest trading partner after
the United States.
The
deficit in India''s trade is attributed to a fall in
the export of Iron ore to China, which constituted over
50 per cent of the country''s trade with the Communist
giant. Iron ore exports to China have slumped with the
Chinese government restraining its overheated economy.
While
bilateral trade between the two countries has shown
positive momentum, officials said, both countries need
to focus better on each
other''s comparative advantages. They also suggested
an expansion and diversification of the trade basket
to sustain the high volumes of bilateral trade.
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