China is India’s largest trading partner despite hostility

Mayabati Mrinmoyee, Contributing Correspondent,
Photo: Collected

Photo: Collected

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There was political tension and border clashes. There was a confrontation in the fight for power in Asia. India and China have been at loggerheads since the 1960s. Despite the hostile relations between India and China, the surprising fact is that China is India's largest trading partner. That information was provided by the international economic organization 'Bloomberg'.

As in the past, India-China animosity was extreme in Corona in 2020 as well. The two countries have also been involved in multiple clashes on the border. Boycotts of Chinese products are often heard in India. In fact, many Chinese apps were officially banned in India. Negative messages are often given by the Indian government on the import of China goods.

Even after all this, in 2020, China has emerged as India's largest trading partner, surpassing the United States. In the midst of the global pandemic, border tensions and economic crisis caused by the outbreak of Covid, India has about 7070 crore dollars in trade with China, in Indian rupees, about Rs. 5 lakh 63 thousand. Of this, goods from China were bought for 5,870 crore dollars, in Indian currency which is about Rs. 4,25,373 crore.

However, Prime Minister Narendra Modi called for "self-reliance" as he did not rely on any other country for equipment. He said that the light of Diwali from kite manja, cheap foreign products should be given priority to domestic products. But in reality, the picture is that India has to import huge quantities of goods from countries like China, the United States and the United Arab Emirates. In comparison, the countries concerned need to buy only nominal products from India.

The International Economic Association (IEA) has released a report based on information from India's Union Ministry of Commerce. It shows that India's trade relations with China as well as the United States and the United Arab Emirates are quite strong. But India's dependence on China is comparatively high. In 2017 and 2018 too, China was India's largest trading partner. America surpassed them in 2019. But in 2020, China has re-emerged as India's top trading partner.

According to figures released by Bloomberg, India had a trade turnover of Rs. 6,13,064 crore ( 8470 crore dollars) with China in 2017. In that year, India's trade with the United States amounted to Rs. 513057 crore ( 7080 crore dollar). In the same year, India had a turnover of Rs.3,64,792 crore ( 5,310 crore dollars) with the United Arab Emirates.

No matter how tense or heated the tensions are, evidence of China's close trade ties with India can be found in the data provided by the international economic body Bloomberg.