India’s exports hike to China exceed its US exports
In the backdrop of the ongoing tussle between US & China, India’s exports are increasing more to China (low base) than to the US (high base). Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI, explains, “Post the trade war, our exports to China have grown much faster than to the USA. While overall exports to the USA grew by 9.46% to US$ 52.4 billion in FY19, for China the growth was 25.6% to US$ 16.7 billion. Looking at the products on which China and the USA have imposed tariffs on each other, India has made modest gains in capturing such market. ”
The effects of the ensuing trade spat have been clearly manifested in their bilateral trade. Though the economy of US is growing, its growth is not a stellar one. Similarly, China has been witnessing a sluggish growth. Chinese exports to the US declined from US$ 42.6 billion in June 2018 to US$ 39.3 billion in June 2019; while its imports from the US slipped from US$ 13.6 billion in Jun’18 to US$ 9.4 billion in Jun’19. In case of the textile industry, for instance, Ghosh points out how China’s textile exports to US plunged until May’19, while the exports of India, Bangladesh & Vietnam to US increased.