labels: economy - general, trade
India registers a negative trade balance with China in Jan-July 2006news
31 August 2006

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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India registers a negative trade balance with China in Jan-July 2006