India’s Q1 imports lift trade with China to record high

Business

A sharp rise in India’s imports of Chinese goods in the first quarter of 2022 pushed bilateral trade up 15% to a record $31.96 billion, trade data released by China on Wednesday showed.

Imports rose 28% from the same period last year to $27.69 billion. However, India’s exports collapsed 26% to $4.87 billion.

In 2021, India’s trade with China surpassed $100 billion for the first time, reaching $125 billion, driven by demand for electronics products, chemicals and auto components. India’s imports accounted for much of the trade, reaching $97.5 billion, while exports surpassed $20 billion for the first time.

.Compared to pre-pandemic trade levels in 2019, imports rose 54% in the first quarter, while exports were 9% higher.

The 15% increase in India-China trade was one of the highest for China’s top trading partners. Overall, China’s exports rose 13.4%, the General Administration of Customs (GAC) said, while imports rose 7.5%. Trade with the US increased by 9.9% and with the EU by 10.2%.

Economists are concerned about the potential impact that the current outbreaks and lockdowns of COVID-19, particularly in Shanghai, could have on China’s supply chains and trade performance in the next quarter.

China is facing “multiple challenges and risks” as well as “sudden internal and external factors” that would challenge the country’s trade performance in 2022, said Li Kuiwen, spokesman for the GAC.

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