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India-China trade drops in 2019

Bilateral trade between India and China has declined by about $3 billion in 2019, even as India’s trade deficit continues to be high at around US$ 56.77 billion. The trade figures released by General Administration of Customs of China (GACC) on Tuesday projected that total trade in Chinese currency RMB-Yuan terms grew marginally by 1.6% YoY, but dropped by US$ 3 billion in dollar terms. China’s exports to India increased by 2.1% YoY to 515.63 billion yuan while India’s exports to China decreased by 0.2% YoY, totalling to 123.89 billion yuan. Besides the deficit, another challenge is that mutual investment has not kept pace with growth in trading volumes between India and China. According to the Ministry of Commerce of China, Chinese investments in India during January-September 2019 were at US$ 0.19 billion and cumulative Chinese investments in India till the end of September 2019 were at US$ 5.08 billion.