In the world`s most dynamic region, 15 nations have signed up for the RCEP: the 10-member Group of Asean and its free trade partners, China, Japan, South Korea, Australia and New Zealand. While it may be difficult for India to return to the RCEP, there are other free trade agreements… As trade slowed, the trade deficit also declined to $56.77 billion from $58.04 billion in 2018. The meeting under the new mechanism is expected to take place this year. Referring to India`s concerns about the trade deficit, said a note published at the Indian Embassy here, while flourishing trade brought with it all the benefits, «it has also led to the largest trade deficit we run with each country.» «While the two countries have proven to be leading investment destinations for the rest of the world, reciprocal investment flows have yet to be caught up. According to china`s Ministry of Commerce, Chinese investment in India amounted to $0.19 billion between January and September 2019, and China`s cumulative investment in India was $5.08 billion at the end of September 2019. Chinese exports to India increased by 2.1% last year to 515.63 billion yuan, while India`s imports to China fell 0.2% to 123.89 billion yuan, he said. India`s trade deficit in 2019 was 391.74 billion yuan, he said. However, in terms of dollars, trade has declined. Bilateral trade amounted to $95.7 billion in 2018 and raised hopes of trade between India and China, which reached $100 billion in 2019. But total trade last year was $92.68 billion, about $3 billion less than in 2018. Chinese dollar exports to India reached $74.72 billion last year, up from $76.87 billion in 2018. India`s exports to China reached $17.95 billion, up from $18.83 billion last year. Gacc Vice Minister Zou Zhiwu, who published the annual trade figures to the media, said that bilateral trade between China and India amounted to 639.52 billion yuan (about $92.68), an increase of 1.6 percent over the previous year.
India`s cumulative investment in China through September 2019 is $0.92 billion, he said. The growth in the trade deficit with China is mainly due to two factors: a narrow, mainly primary basket that India exports to China, and barriers to access to most Indian agricultural products and its competitive sectors such as pharma, IT/ITeS, etc. India has gained greater market access for Indian information technology companies, pharmaceuticals and agricultural products, including essential raw materials such as sugar, rice, milk and dairy products. India, a major producer of these raw materials, can prove to be an extremely stable and profitable source for China. Over the past two years, two countries have discussed initiatives at different levels in this regard. According to China`s official media date released Tuesday, bilateral trade between China and India amounted to 639.52 billion yuan in 2019, an increase of 1.6 percent over the previous year. However, it has fallen by $3 billion in dollars compared to 2018, with global trade overall moderately reduced in 2019. Bilateral trade is expected to reach $92.68 billion in 2019, up from a record $95.7 billion in 2018.
India`s trade deficit with China has also narrowed to about $56.77 billion in 2019, down from about $58 billion in 2018. The Comprehensive Regional Economic Partnership (RCEP) — which, along with China, Japan, South Korea, New Zealand and Australia, includes 10 Southeast Asian economies — is the world`s largest trade pact in terms of GDP, analysts say. Trade figures released on Tuesday by the General Administration of Customs of China (GACC) projected all of China`s RMB-Yuans currency exchanges with a high