India’s trade with China

Why Trade with China is Important

Our Trade account deficit with China is around $39 billion. This is because as India has mostly imported electronics and hardware from China. Now that India wants to narrow this deficit, it is ready to provide the software services and expand its presence, as India cannot narrow this gap through traditional export commodities.



At the same time India is getting pressure in hardware and electronics, manufacturing sectors to use China products, but India is keen to develop in house and reduce imports to boost jobs. Also China wants to get into mobile telephony, digital TV, audio, but we are not interested in that as India want to develop our domestic industry.

Where can we work together:

Meanwhile India is also keen in looking china’s technical help in Indian Railways infrastructure to improve heavy lagging operations, station development and speeding up the trains.

In summary, India can do trade with China where

  • India can benefit from infrastructure expertise of Chinese and that don’t have domestic industry impacted.
  • Areas where there are no security concerns.






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