The bilateral lines operations started quite some time ago, about 12 years back. Indeed, China is the second largest trade partner, other partners being UAE. In fact, the trade between India and China reached a record high of USD 73.9 billion last year. But the same condition could not continue to mutual benefits as the mounting trade deficit dictated different terms. The value of import from China was much greater than that of export from India. It is clear that the freight rates account for this deficit. While import rates are somewhere about USD 800-850 per Twenty Foot equivalent unit, the export rate is considerably lower, about USD 100. Therefore, export trade is very unproductive and unviable. Mr. Amit Goyal, Chairman, Western Region for the Federation of Indian Exports Organizations, said: “Imports from China constitute 20% of our total import basket”. India imports from China engineering related articles, stationary products, toys and the export items are cotton yarn, food products and some pulses. Unviable trade anywhere will prove a burden that must be shed as early as possible.
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