After a long Ladakh Standoff, the People’s Republic of China has again become India’s top trading partner in 2020 during COVID-19 Pandemic. The reason was that India was still dependent on Chinese import of heavy machines, telecom equipment and home appliances.
- The provisional data of the bilateral trade in the year 2020 stood at US$ 77.7 billion.
- However, India-China trade had decreased as compared to the 2019 trade total of US$ 85.5 billion.
- Chinese imports heavy machines etc outweighed India’s efforts to cut down its dependence on trade.
- As a result of which, the bilateral trade gap of India with China was US$ 40 billion in 2020.
- Total Indian imports from China stood at US$ 58.7 billion which was more that India’s combined imports from The United States of America and United Arab Emirates.
- Further data highlights that, India was able to lower the imports from its Asian neighbors despite there were demand disruptions amid the COVID-19.
Under Modi Administration, India had banned several Chinese apps and slowed the approvals on investments from China in a bid to make India self-reliant following a deadly clash with China at the Galwan Valley in the disputed Himalayan border.
India-China relation has varied over time. Both have sought economic cooperation with each other despite having several conflicts like border disputes and economic nationalism. The modern relationship between the countries began in the 1950 when India ended the formal ties with Republic of China (Taiwan). It then recognized People’s Republic of China as legitimate government in the mainland China. Both sides are two major regional powers in the Asia region. They are also the fastest growing major economies. The growth in diplomatic and economic arena has further increased the importance of the bilateral relationship between India and China.
China becomes India’s top Trade Partner China becomes India’s top Trade Partner