India's trade deficit with China swells $53 billion in 2015-16

The Dollar Business Bureau 

India's trade deficit with China has surged to $52.68 billion in the 2015-16 fiscal from $48.48 billion in 2014-15, a senior minister informed on Monday.

"Increasing trade deficit with China can be attributed to the relative demand for imports in India and China for each other's goods," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

Sithraman underscored that the government is trying to diversify the country’s exports basket, while focusing on cutting its import bills.

She said India would focus on exporting manufactured goods and services to its neighbor, and it would also streamline market access issues and non-tariff barriers.

India imports majorly chemicals and drug intermediaries, computer hardware and peripherals, electronic components, fertilisers, project goods, and telecom instruments, and exports cotton, iron and steel, leather, iron ore, plastics, raw hides, tin, slag or ash.

India-China bilateral trade stood at $70.73 billion in the previous financial year, down from $72.34 billion in 2014-15.

Responding to query on tea gardens, the commerce minister said the Tea Board has received 15 bidding applications pertaining to management of seven tea gardens.

In January, the government permitted the tea board to announce bids to take over the management of seven tea gardens, including Garganda Tea Estate, Birpara Tea Estate and Lankapara Tea Estate.