India’s imports from China have risen to $5.6 billion in July, climbing for the second straight month, although imports are still down by 24% from 2019.
India’s imports from China, its largest trading partner in goods, had fallen to a record low of $3.2 billion both in the months of April and May, coinciding with India’s lockdown on account of the pandemic.
Imports subsequently rose to $4.8 billion in June and further to $5.6 billion in July, almost back to the pre-lockdown level of $5.8 billion reported in March, in part, economists said, driven by Chinese exports of medical supplies.
After seven months of this year, India’s imports from China reached $32.2 billion, down by 24.7%year-on-year, largely because of the record slump in April and May, according to figures from China’s General Administration of Customs released on August 7.
Two-way trade is $43.37 billion and continues to be heavily tilted in China’s favour, with India’s exports, which are up 6.7% year-on-year, accounting for $11 billion.
The slump in China’s exports to India contrasts with its recovery overall. The GAC’s figures showed China’s exports overall rose 7.2% in July, beating most estimates, while imports fell 1.4% year-on-year. China posted a trade surplus of $62.33 billion, surpassing the $42 billion estimated given by economists to Reuters.
A jump in export of medical supplies was seen by economists as one reason. “Much of the recent resilience of exports has been due to shipments of masks, medical products and work-from-home equipment,” Martin Rasmussen, China economist at Capital Economics, was quoted as saying by Reuters, adding that China’s “stimulus-led recovery” would support a rebound in imports in coming months.
