India registered a negative trade balance of $31.66 billion in its trade with China for the first nine months of the current financial year (April-December 2012-13) as the country's trade deficit with China steady grew from $19.21 billion in 2009-10 to $28.00 billion in 2010-11 and further to $39.44 billion in 2011-12. India's bilateral trade with China declined by 11.60 per cent during the first nine months of 2012-13 (April-December) compared to the same period in 2011-12, against a 28.21 per cent growth in 2011-12 and a 38.93 per cent growth in 2010-11. India's exports to China, during the first nine months of the current financial year also declined by 25.10 per cent while imports from China declined by 7.7 per cent when compared to April-December 2011-12. Since India's imports have been more than its exports to China, it has adversely impacted the trade deficit with that country. Bilateral trade between India and China for the first nine months of fiscal 2012-13 stood at $51.10 billion with India having a negative trade balance of $31.66 billion. As trade between the two countries steady grew from $42.44 billion in 2009-10 to 58.96 billion in 2010-11 and further to $75.59 billion in 2011-12, India's trade deficit with China has also grown from $19.21 billion in 2009-10 to $28.00 billion in 2010-11 and to $39.44 billion in 2011-12, trader statistics showed. The decline in export earnings has been mainly due to decrease in the exports of iron ores, cotton raw including waste, plastics and linoleum products, petroleum (crude and products), electronic goods, drugs and pharmaceutical products, transport equipments, gems and Jewellery, chemicals and allied products etc. India also imported less of machinery (except electrical and electronics), project goods, iron and steel, transport equipment, gold, petroleum, crude and products, non-ferrous metals, inorganic chemicals, chemical material and products, machine tools etc from China. The decline in bilateral trade can also be attributed to the overall negative sentiment on the back of the global recession and low demand. Ban on export of iron-ore from Karnataka and Goa also contributed to decline in India's exports to China. Source: Domain-b
