New Delhi: The Modi government’s self-reliant India campaign seems to be having good success. The trade deficit with China has more than halved in the first five months of this fiscal year 2020-21.
The trade deficit halved between April and August 2020 compared to the same period last year. The main reasons for this are the increase in India’s exports to China and the decline in imports due to the steps taken by the central government under the Self-Reliant India Campaign. Due to the anti-China atmosphere in the country, the government has also imposed various restrictions on imports from China. Anti-dumping duties have been imposed in India to curb dumping of various types of goods.
According to a report by Business Standard, the trade deficit between India and China between April and August 2020 was only .6 12.6 billion (about Rs 93,000 crore). The deficit was 22 22.6 billion in the same period of fiscal 2019-20. Even before that, India’s trade deficit with China was 13 13.5 billion in FY18-19.
These are the two main reasons
Thus, the main reason for reducing the trade deficit is Prime Minister Narendra Modi’s self-reliant India campaign and rising tensions on the border with China. India has consistently sought to reduce its trade dependence with China.