PM’s Self-Reliant India Movement seems to be success, Trade deficit from China halved in 5 months
New Delhi: The Prime Minister Narendra Modi’s Self-Reliant India Campaign seems to be successful as China suffers trade deficit between April to August 2020. Within the first five months of this fiscal year 2020-21, the trade deficit from China has been reduced by almost half. The reasons stated behind the fall in the economy is due to decrease in imports and increase in Indian exports to China. The Central Government of India is trying to isolate China by implementing a self-sufficient India campaign and also to curb China’s imports due to increasing tensions on the border.
Due to the anti-China environment in the country, the government has also imposed several restrictions on imports from China. Anti-dumping duties have been imposed to prevent dumping of many types of goods in India.
According to a Business media report, the trade deficit between India and China between April and August 2020 was just $ 12.6 billion (about Rs 93 thousand crore). In the same period of fiscal year 2019-20, this deficit was $ 22.6 billion. Even before that, in the financial year 2018-19, India’s trade deficit with China was $ 23.5 billion.
On the other hand, India has continuously tried to increase its exports to China. In August, exports to China for the fourth consecutive month have seen double-digit growth. This increase is mainly due to the increase in iron and steel exports to China. The exports of iron and steel to China have seen an increase of about 8 times.
India’s exports to China have seen a tremendous increase of 27% between April and August. The exports to China grew by just 9.5 % for the same time last year. In June, exports to China have increased by 78%. Similarly, exports grew by 48 % in May and 23 %t in July.