How come China has again emerged as India largest trading partner instead of the US?
Answer
Answer
After ceding the mantle of top trading partner to the US, it is China that once again regained its position as India’s top trading partner in 2020. Two-way trade between India and China stood at $77.7 billion in 2020 as per provisional data. China managed to just edge past the US which had bilateral trade worth $75.9 billion with India.
Total imports from China stood at $58.7 billion while India’s exports to China stood at $19 billion, taking the trade deficit for the year to $40 billion. The US and UAE rank in second and third place in terms of trade with India. India’s Atma Nirbhar PLI scheme could take another 4-5 years to bear fruit and reliance on China will continue till then.