India’s Exports To China Increasing, Amid Trade Hostility

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China reports an unexpectedly strong jump in its export from India. Exports to China are increasing and it has jumped up to 31%. Despite the slump in the economy, this record is from April to July. However, the overall exports register a negative growth of 29.99%. But monthly trade analysis shows that exports to China see a considerable rise of 30.71%. The Commerce Ministry presents the data. The export data is driven by demands for automobiles and medical supplies. The country’s customs authority releases this data on Friday. Moreover, the imports for China fell by 1.4% as per the records of July. India is currently halting a trade ban against China. But despite the trade drawbacks, it records such a considerable rise.

India’s Exports To China Increasing

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India’s exports to china increasing. Image Source: www.orfonline.org

As per records, India’s exports to China face a considerable rise of $7.2 billion during April-July 2020. It was $5.57 billion at the same time last year. However, the overall exports for the country fell down to $75.01 billion. Last year the record was $104.7 billion. Ever since 2007-08, this is the highest record of exports from India to China. You can find all the monthly trade figures online.

There is also a surge in India’s total exports to China. It rises up to 9.71% in April-July when it was 5.2% the last year. Economists say that increasing demand in medical supplies makes the surge. The demand for face masks and medical products amidst the coronavirus led to the rise. Whether the demand for medical goods will stay longer is not known yet. However, data analysts say that the demand is unlikely to carry on. This is because of the emergence of COVID-19 clusters since July. Besides, the removal of lockdown restrictions is done in a hurry. However, there are no specific reasons given for the rise as such.

The Sudden Surge

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There has been a sudden surge in exports to China. Image source: Zee Business

The rise of India’s exports to China has been going very slow annually. However, this year there is a steep sharp rise. As per the records of the last financial year, China was the third-largest importer of Indian goods. The US accounts for the first position with exports of 16.4%. And UAE holds the second position with 9.21%. There is, however, no specific reasons given for the rise. But we can assume that there might have been pre-contracted orders. Thee orders were shipped after the lift of lockdown strictness.

In China, the pandemic records stirred quite early. For this reason there was a disrupt in the trade from January to March 2020. However, in India, the impact began in April whereas lockdown began in late March. The Home Ministry on March 25 confirms the lockdown guidelines. It states that the operations of seaports, airports, and railways will be for “cargo movement”. While interstate movements of goods will be for exports and inland. As per data in January the export rise to China was about 23.15%. However, in February it was -13.62%, March records 36.6%, and April -20.69%. Therefore this is a considerable rise for the year 2020.

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