The country’s trade deficit with China has climbed to $52.69 billion in FY16 as compared to $ 48.48 billion in the FY15. The trade deficit during the April-September period of 2016-17 stood at $25.22 billion. India's import of bulk drugs from China stood at $1.63 billion in 2015-16, which constitutes 64 per cent of India's total bulk drug imports. Overall, India had imported such drugs worth $2.5 billion last fiscal.
Commerce and Industry Minister Nirmala Sitharaman has pointed that the trade deficit can be attributed mainly to the fact that Chinese exports to India are strongly dependent on manufactured items to meet the demand of fast expanding sectors like telecom and power. Minister also noted that, India is currently negotiating the Regional Comprehensive Economic Partnership (RCEP) trade agreement keeping in view its export interests as well as sensitivities pertaining to all other participating countries including China.
The minister added that efforts are being made to increase overall exports by diversifying the trade basket with emphasis on manufactured goods, services, resolution of market access issues and other non-tariff barriers. She further highlighted that both India and china are members of the World Trade Organization (WTO) and no blanket ban can be imposed on any member country under the WTO framework. Though, she said that efforts are being made for revival of (Active Pharmaceutical Ingredient) API industry to lessen dependency on import of key starting materials, intermediates and bulk drugs including from China.