Tapping this export opportunity can substantially reduce India’s trade deficit with China
Chinese market holds an annual untapped potential of USD 82 billion in 20 goods where Indian exporters have competitive advantage, reveals latest data from Geneva-based International Trade Centre (ITC), the only multilateral agency committed to the mission of internationalizing small and medium enterprises.
These 20 goods, which are mentioned in the following table along with their 8-digit internationally accepted customs code, belong mainly to the organic chemicals, plastics and articles, engineering, iron & steel and agricultural sectors.
According to an analysis by MVIRDC World Trade Center Mumbai, India meets hardly 3.3% or USD 2.7 billion of the total annual import demand of USD 82 billion for these 20 products in China (figures are for 2018). India has a competitive advantage in these products as we export USD 15 billion worth of these goods to the world, which is 4.5% of our annual exports. These goods constituted about 17% of India’s exports to China in 2018. India can substantially reduce its trade deficit with China, which stood at USD 53.56 billion in 2018-19, by enhancing its market share for these products in that country.
|HS Code||Product Description||China's Imports from the World (2018)||India's Exports to China (2018)||India's Exports to the World (2018)|
|29053100||Ethylene glycol (ethanediol)||9,082||213||291|
|84798999||Other machines and mechanical appliances||6,936||5||215|
|2023000||Frozen boneless bovine meat||4,240||0||3,323|
|39021000||Polypropylene, in primary forms||4,191||183||864|
|88033000||Parts of aircraft||2,271||15||1,638|
|84073410||Engines and other auto-components||2,264||0.009||166|
|84839000||Machinery, Mechanical Appliances and their parts||2,126||3||169|
|85369090||Electrical Machinery and equipments||1,212||8||221|
|84149090||Machinery, Mechanical Appliances and their parts||1,142||13||276|
|24012010||Tobacco and tobacco products||1,039||1||406|
|72104900||iron and steel products||984||0.006||484|
Source: ITC, Geneva, compiled by MVIRDC WTC Mumbai
Speaking about the market opportunities for Indian exporters in China, Ms. Rupa Naik, Senior Director, MVIRDC World Trade Center Mumbai said, “In order to realize this untapped export potential, India and China must exchange trade delegation with members from these identified sectors. We must also create awareness on this opportunity among India’s micro, small and medium enterprises producing these identified products.” Increasing our market share for these products in China will add further momentum to the growing exports of India in this country. India’s overall exports to China grew 5.39% to USD 11.57 billion in April-November 2019, even as our total exports to the world declined 2.0% during this period. India’s overall trade deficit with China declined 5% to USD 35.3 billion in the first eight months of the current financial year compared to USD 37.3 billion in the year ago period.