India Highlights Trade Imbalance with China at WTO

New Delhi Raises Issues Over Trade Imbalance and Subsidies

India has expressed concerns about its significant trade deficit with China, highlighting issues such as non-transparent subsidies that result in low prices and negatively impact local industries. These concerns were raised at the World Trade Organization (WTO) Trade Policy Review of China this week.

Key Points:

• Trade Imbalance: India’s trade deficit with China is its largest with any country. In the financial year 2023-24, India’s exports to China were $16.65 billion, while imports from China totaled $101.75 billion, leading to a trade deficit of $85.08 billion. This is an increase from the $83.19 billion deficit in 2022.
• China’s Exports: China’s overall merchandise exports increased from $2,589 billion in 2020 to $3,594 billion in 2022, but then declined to $3,380 billion in 2023.
• Non-Transparent Subsidies: India criticized China’s use of non-transparent subsidies and mechanisms that keep prices low, harming Indian industries.
• Global South Support: India expressed hope that China would support issues important to developing countries, providing real and tangible benefits.

International Concerns:

• European Union: The EU also raised issues about China’s industrial policies, import substitution, and a politicized business environment.
• Additional Issues: India is also concerned about China’s non-trade barriers, services, and intellectual property rights.

Looking Ahead:

India’s concerns at the WTO aim to address the persistent trade imbalance and seek fairer trade practices with China. The discussions are part of ongoing efforts to create a more balanced and transparent global trade environment.