It is estimated that India’s trade deficit with China has declined to 48.7 billion dollars, the lowest during the last five years, compared to 53.6 billion dollars a year ago. The cause has been called upon imports as they have dropped by over 7% in 2019–20.
In 2014-15, the trade deficit was roughly the same level as in the Narendra Modi administration when it took office for the first time, but 34 percent higher than in 2013-14, suggesting the government has achieved results by its actions in the last months.
Officials of the Trade Department said the proposed mega-free trade agreement will help to overcome the deficit by adopting a new option, including faster trade remedies, for subsidized or dumped goods to help rescue the Indian industry.
The decline in imports from China also helped the US as India’s biggest trading partner to increase its lead. India’s trade with China was linked to just below $82 billion, against trade with the US of $88.8 billion.
