India can explore an annual $82-billion export potential in twenty products, including electrical equipment and ferro alloys, in the world’s second largest economy China, according to a report. Indian exporters have a competitive advantage as far as these twenty goods are concerned.
Currently, India meets only 3.3 per cent or $2.7 billion of the total annual import demands of $82 billion for these 20 products in China.
India’s exports of these 20 products are worth around $15 billion to the world, which is 4.5 per cent of the country’s annual outward shipments.
These goods constituted about 17 per cent of India’s exports to China in 2018, according to the report by MVIRDC World Trade Centre Mumbai.
India can substantially reduce its trade deficit with China, which stood at $53.56 billion in 2018-19, by enhancing its market share for these products in that country, the report added.
Electrical equipment, tobacco, iron and steel, ferro alloys, parts of aircraft, engines and other auto-components, benzene, frozen boneless bovine meat are some of the product segment out of the 20 in the list.
“In order to realise this untapped export potential, India and China must exchange trade delegation with members from these identified sectors. We must also create awareness on this opportunity among India’s micro, small and medium enterprises producing these identified products,” MVIRDC World Trade Centre Mumbai Senior Director Rupa Naik said.
Increasing India’s market share for these products in China will add further momentum to the growing exports of India in this country, she added.
India’s overall exports to China grew 5.39 per cent to $11.57 billion in April-November 2019, even as our total exports to the world declined 2 per cent during this period.
The country’s overall trade deficit with China declined 5 per cent to $35.3 billion in the first eight months of the current financial year, compared to $37.3 billion in the year-ago period, the report added.