This blog explores the EXIM (Export-Import) trade relations between India and China, including economic dynamics, statistical insights, a detailed guide to starting EXIM trade, trade agreements, tariff and non-tariff barriers, major export-import products, and the future of trade between these two nations. India and China, two of the world’s largest and fastest-growing economies, share a complex and dynamic trade relationship. Dynamics and Statistics of India-China Trade. India’s Exports to China are valued at around $30 billion. India’s Imports from China are valued at approximately $105 billion. The Indian Embassy in Beijing serves as a pivotal link between India and China and has listed down various economic, trade and investment details between the two countries.
How to start export-import trade from India to China?
In 2022, China exported $69.3 billion worth of goods to India. The primary products included computers ($6.28 billion), broadcasting equipment, and integrated circuits. Over the past 5 years, China’s exports to India have grown significantly at an annualized rate of 137%, starting from $924 million in 2017 and reaching $69.3 billion in 2022. Interestingly, China did not export any services to India during this period1. On the other hand, India exported $12.7 billion worth of goods to China in 2022. The main products India exported to China were refined petroleum ($1.95 billion), iron ore, and crustaceans. India’s exports to China have also seen substantial growth, increasing at an annualized rate of 97% over the past 5 years, from $429 million in 2017 to $12.7 billion in 2022
- Business Registration: Select the appropriate business structure (e.g., sole proprietorship, partnership, private limited company). Register with the Ministry of Corporate Affairs in India. Acquire an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT).
- Customs and Documentation: Register with the Central Board of Indirect Taxes and Customs (CBIC). Ensure proper documentation, including invoices, certificates of origin, and shipping documents.
- Compliance with Chinese Regulations: Adhere to China’s quality and safety standards. Comply with China’s import regulations and obtain necessary permits.
Top export-import products between India-China
Major Exports from India to China
- Organic Chemicals: Significant export due to India’s strong chemical industry.
- Minerals and Ores: High demand for iron ore and other minerals in China.
- Cotton and Textiles: India exports large quantities of raw cotton and textiles.
Major Imports from China to India
- Electronics and Machinery: A major import category, including smartphones, computers, and industrial machinery.
- Pharmaceutical Ingredients: China supplies key raw materials for India’s pharmaceutical industry.
- Consumer Goods: A wide range of consumer products, from toys to home appliances.
What are tariff and non-tariff barriers in between India- China?
Tariff Barriers
India and China impose various tariffs on goods traded between the two countries. While efforts have been made to reduce tariff barriers, certain sectors still face significant duties:
- Electronics and Machinery: Subject to moderate to high tariffs.
- Textiles and Apparel: Some items attract higher tariffs due to protective policies.
Non-Tariff Barriers
Non-tariff barriers often pose significant challenges and include:
- Quality Standards: Both nations have stringent quality control measures that exporters must adhere to.
- Import Licensing: Certain goods require import licenses, adding to the complexity.
- Regulatory Compliance: Compliance with local regulations, including health and safety standards, is mandatory.
What are key trade initiatives Taken by India-China?
- Regional Comprehensive Economic Partnership (RCEP): Although India opted out of the RCEP in 2019, China remains a key member. This agreement aims to enhance trade and investment flows among member countries, indirectly impacting India-China trade dynamics.
- Strategic Economic Dialogue (SED): A platform for discussing and resolving economic and trade issues.
- Joint Working Groups: Established to address specific sectoral issues and enhance trade cooperation.
Future of Trade Between India and China
- Technological Collaboration: Potential for increased collaboration in technology and innovation.
- Agricultural Trade: Expanding trade in agricultural products to balance the trade deficit.
- Renewable Energy: Joint initiatives in renewable energy projects and green technologies.
- Trade Imbalance: Addressing the significant trade deficit remains a priority for India.
- Geopolitical Tensions: Navigating the complex geopolitical landscape to ensure stable trade relations.
- Regulatory Hurdles: Simplifying regulatory frameworks to facilitate smoother trade.
India-China EXIM trade relations are marked by significant economic interactions, strategic initiatives, and complex challenges. While the trade volume between the two countries is substantial, addressing the trade imbalance and navigating regulatory hurdles are crucial for enhancing future trade relations. For businesses looking to engage in EXIM trade between India and China, understanding the regulatory environment, major products, and compliance requirements is essential for successful operations. Nitisara Value Chain Platform helps you in the whole process of EXIM trade, efficiently and seamlessly. Stay informed through Nitisara Platform and Blogs and adapt to emerging trends are poised to thrive in the competitive global marketplace.