NEW DELHI (CU)_China has regained its position as India’s top trading partner, despite growing tensions between the two neighbouring countries.
According to Delhi’s commerce ministry, bilateral trade between Asia’s longstanding rivals stood at $77.7bn (£55.2bn) in 2020. Although this figure was lower than the previous year’s $85.5bn total, however, it was sufficient for China to surpass the United States and become India’s largest commercial partner.
Meanwhile, the United States and the United Arab Emirates were identified to be India’s second and third largest trade partners last year, although the combined imports from these two countries were far less than purchases from China worth $58.7bn.
The COVID-19 pandemic heavily disrupted global trade, especially with months-long border closures, although the demand medical equipment and supplies saw a significant rise last year.
While India has been attempting to become more self-reliant and limit trade with neighbouring China, however, New Delhi continues to depend on home heavy machinery and telecom imports from Beijing. Experts say that this is owing to attractive prices of Chinese products and their availability in sufficient amounts.
In June last year, Chinese and Indian troops engaged in a deadly clash at the Himalayan border, which killed 20 Indian soldiers, while China reported 4 casualties following the skirmish. It was he first deadly clash in 45 years, between the two neighbouring countries in the disputed border area which is poorly demarcated with the presence of rivers, lakes and snow-caps.
Nevertheless, a couple of weeks ago, India’s Defence Minister Rajnath Singh announced that following a productive discussion with China, the parties have agreed to remove troops from the friction points.
