Beijing: After posting impressive growth in the past few years, India-China bilateral trade declined by 10.1 per cent to $66.47 billion in 2012. According to the figures released by the Chinese Commerce Ministry, India's trade deficit mounted to $28.87 billion due to steady decline of export of iron ore.
The deficit grew by $1.79 billion compared to 2011, it showed. The bilateral trade touched $61.74 billion in 2010 posting a high growth at 42.66 per cent followed by 19.71 per cent in 2011 with $73.9 billion.
This is the first time in recent years the bilateral trade registered negative growth, which according to officials was inconsistent with the decline in global trade. Indian exports to China declined by 19.6 per cent to $18.8 billion 2012 compared $23.41 billion in 2011 and $20.86 billion in 2010.
Significantly China's exports to India, which in the past had a high volume of growth, declined by 5.7 per cent to $47.67, the data showed. China's exports touched $50.49 billion in 2011 from $40.88 billion in 2010.
While the two countries were confident that the trade volumes would pick up, there is a great deal of scepticism about Indian exports making much headway as China has not opened up much on IT, and pharmaceuticals fronts despite high voltage campaigns by India. Top Chinese leaders also have been openly acknowledging that the high trade Indian deficit is a matter of concern for bilateral trade, that is aimed at reaching the $100 billion target in 2015.
"China pays close attention to the trade imbalance. We have already encouraged Chinese companies to import more from India and will continue to do so," China's top negotiator with India Dai Bingguo had said. He was confident that $100 billion set by both the countries for 2015 would be achieved.
"As neighbours and large emerging countries, China and India enjoy huge potential and broad prospects for economic cooperation. We are confident that, by working together, we will reach the goal of $100 billion of two-way trade by 2015," he said. The two countries held high level strategic dialogue in December 2012 raising the prospects of increase in trade and investment between both the countries in 2013.
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