Trade Volume between India vs China

India's export to China declined during the year 2008-09 and China's exports to India declined during the year 2009-10. However total trade between India and China during the last three years has been increasing gradually. The details of the bilateral trade between India and China during the last three years is given below:- 

                                                                                                          Value in USD million

Year	Exports to China	Imports from China	Total Trade
2007-08	10871.34	27146.41	38017.75
2008-09	9353.5	32497.02	41850.52
2009-10	11617.88	30824.02	42441.90

                                                                                                    (Source: DGCI&S)

 

            There are various factors which restrict exports from India to China. China's macroeconomic policies, exchange rate policy and other specific non-tariff measures make exports to China uneconomic and cumbersome. During the eighth session of India-China Joint Group on Economic Relations, Trade, Science and Technology (JEG) held on 19^th January, 2010, the Commerce & Industry Minister raised the issue of growing trade deficit with his Chinese counterpart. As an outcome of 8^th JEG, an MoU on Expansion of trade and Economic Cooperation was signed between India and China. The MoU recognizes that a balanced trade is conducive to long term, sustainable and harmonious development of economic cooperation between India and China. As per the MoU, the Chinese side shall strive to import as much of its requirement of value added goods from India as possible