Beijing: India's trade deficit with China rose to a whopping USD 37.8 billion last year even as bilateral trade picked up, totalling USD 70.59 billion, a year on year increase of 7.9 per cent.
According to annual figures released by China's General Administration of Customs (GAC), the total trade volume went to USD 70.59 billion from last year's USD 65.57, an increase of USD 5.02 billion amid increasing Chinese exports to India.
India-China trade hit all time high of USD 73.9 billion in 2011 but declined to USD 66.57 billion in 2012 and USD 65.49 billion in 2013.
As per the figures released by Chinese customs, the bilateral trade increased by 7.9 per cent, halting the decline in the last two years.
But India's trade deficit woes continued as it mounted as high as USD 37.8 billion, making it very difficult to bridge the gap. The leadership of the two countries have fixed a trade target of USD 100 billion for this year.
Chinese exports to India surged to USD 54.2 billion, posting a 12 per cent increase while Indian exports to China decelerated to USD 16.4 billion, a decline of 3.5 per cent. Indian exports totalled to USD 17.04 billion in 2013.
While the trade has increased between the two countries becoming a binding factor in improving relations, the ever- widening deficit has become a major stumbling block, especially for India, whose exports were hit by depreciating rupee and also by declining exports of iron ore which previously was the main stay of Indian exports.
