BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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India exports more items to China whereas China does not export much to India.
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India is not able to export much to China whereas its import from China is of higher value.
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China and India are not at all trade partners. Hence there is no transaction between the two countries.
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As per WTO laws, India is supposed to export food-grains to China. But China has not placed any order for the same in 2006-07. It has also refused to accept 200 lakh tonnes of wheat exported to it by India.
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Detailed explanation-1: -In a nutshell, the trade deficit with China is caused by the country’s lower costs of labor and American demand for the goods produced there. The largest categories of U.S. imports from China are computers, cell phones, apparel, toys, games, and sporting goods.
Detailed explanation-2: -The trade deficit in 2021 stood at $ 69.6 billion as India’s imports from China witnessed an increase of 46% to reach $98 billion. India’s exports to China increased by 34.3% year-on-year to reach $28 billion in 2021.
Detailed explanation-3: -The balance of trade is the difference between a country’s exports and imports of goods, while the balance of payments is a record of all international economic transactions made by a country’s residents, including trade in goods and services, as well as financial capital and financial transfers.
Detailed explanation-4: -Government intervention to control exports of petroleum products and certain commodities due to domestic demand and inflation contributed to the widening of the trade deficit.