Question : Trade Deficit between India and China

(a) whether the Government has taken any stringent and appropriate measures to narrow the trade deficit between India and China;
(b) if so, the details thereof along with the total value of imports in Indian rupee from China during the years 2014-15, 2015-16,and 2016-17;
(c) the list of major Chinese products, raw and finished goods flooded into the domestic markets in India along with their value; and
(d) whether the Government has adequate support and facilitation to indigenous industries to combat the over dumping of Chinese products in Indian market and if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI C. R. CHAUDHARY)

(a) to (d): Imports exceed exports because of shortages/non-availability of items domestically or because of the cost competitiveness of the foreign manufacturers. Government has formulated various schemes/programmes to help the domestic enterprises compete effectively with imports from China and other countries. Efforts are made to promote manufacturing through initiatives like ‘Make in India’, ‘Digital India’, ‘Skill India’ etc. which provide support for promoting domestic manufacturing capacity in the country. Some of these schemes/programmes which support the Micro, Small and Medium enterprises (MSMEs) include National Manufacturing Competitiveness Programme (NMCP); Credit Guarantee Scheme; Credit Linked Capital Subsidy Scheme; Cluster Development Programme; Market Development Assistance Scheme and Vendor Development Programme for Ancillarisation. These schemes/programmes help MSMEs to increase their competitiveness to challenge cheap Chinese imports in the country.

With a view to protecting its domestic producers and consumers, India has an elaborate and robust legal framework and institutional set up to protect its environment, life and health of its people, plants and animals. Adequate provisions exist under the Foreign Trade Policy to protect the Indian consumers and producers as imported goods are subject to domestic laws, rules, orders, regulations, technical specifications, environmental and safety norms. The BIS standards applicable to domestic goods are also applicable to imported goods. Import of food/edible items is subject to FSSAI standards. Import of plant & plant based products are subject to Plant Quarantine measures and sanitary & phyto-sanitary measures. Import of animal & animal based products are subject to sanitary import permits.
Against cheaper imports causing injury to domestic industry, there are trade defence measures taken like anti-dumping duty, countervailing duty and safeguard duty. Whenever Indian industry is affected by cheaper imports, it can seek remedies from the Government under the above provisions. Directorate General of Anti-Dumping & Allied Duties(DGAD) conducts anti- dumping investigations on the basis of duly substantiated petition filed by the domestic industry alleging dumping of goods into the country causing injury to the domestic industry. Similarly, DGAD conducts anti-subsidy investigations against countries subsidising their export products. As on 29.1.2018, anti-dumping duty is in force on 99 products imported from China. Section 8B of the Customs Tariff Act, 1975, subject to certain conditions, empowers the Central Government to impose Safeguard Duty on any article imported into India in such increased quantities and under such conditions so as to cause or threaten to cause serious injury to the Indian domestic industry.
Details of imports from China to India during 2014-15, 2015-16, and 2016-17 are given below: -
India''s Import from China during the years 2014-15 to 2016-17

Value in Rs. Crore
Year Value
2014-15 3,69,565.36
2015-16 4,04,043.38
2016-17 4,11,093.51
(Source; DGCI&S)
Top 50 Principal Commodity Group-wise India’s import from China for the last three years including raw and finished goods are attached as Annex-I.
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Annex-I
India''s Import of items from China (top 50 items, based on the import value for the year 2016-17)
during the financial years 2014-15 to 2016-17

ITCHS Item Desccription Unit of Quantity 2014-15 2015-16 2016-17
Quantity Value (Rs. Crore) Quantity Value (Rs. Crore) Quantity Value (Rs. Crore)
1 84713090 OTHR DGTL AUTOMATC DATA-PROCESNG MACHINE WEGHNG <=10KG WTH A KEYBOARD AND DISPLAY CONSISTNG OF A CENTRAL PROCESNG MACH NOS 1495190 1557 1208081 1235 845235 1092
2 76071190 OTHER ALUMINIUM FOIL ROLLD KGS 41402211 801 47645561 882 64572300 1137
3 85238020 DISCS WITH INFORMATION TECHNOLOGY SOFTWARE NOS 1284960 898 2673739 1472 1290172 1140
5 84733020 PRTS AND ACCSSRS OF MOTHERBOARDS KGS 1517074 1063 1438185 1175 1092143 1168
6 72253090 OTHER HOT-ROLLED PRODUCTS IN COILS KGS 578738686 1913 910608319 2125 416340768 1168
7 95030030 DOLLS OF PLASTIC NOS 595804440 631 787054895 776 1197683067 1180
8 85287100 OTHER RECEPTN APARTS FOR TV ETC COLOUR NOS 9890415 1276 25768079 2957 13937692 1187
9 84479020 MACHINES FOR MAKING EMBROIDERY NOS 10046 735 26716 1204 9602 1209
10 84433100 MACHINES WHICH PERFORM TWO OR MORE OF THE FUNCTIONS OF PRINTING, COPYING OR FACSIMILE TRANSMISSION, CAPABLE OF C NOS 1243084 1213 1209347 1310 1129881 1222
11 85340000 PRINTED CIRCUITS KGS 4282861 745 5105926 958 8428454 1227
12 40112010 RADIALS TYRES USED ON BUSES/LORRIES NOS 620246 463 1238243 1077 1387371 1237
13 38089990 OTHER SIMILAR PRODUCTS N.E.S. KGS 25380247 1192 14506432 757 30108288 1281
14 85423900 OTHER NOS 360098080 1000 533394188 1066 841376744 1285
15 84717020 WINCHESTER/HARD DISC DRIVES NOS 3302221 1187 3647896 1176 3640319 1293
16 29419090 OTHER ANTIBIOTICS KGS 4037347 1962 3964399 2269 2798650 1310
17 84151010 SPLIT SYSTEM AIR CONDITIONING MACHINES NOS 832497 983 764067 838 1353127 1326
18 89040000 TUGS AND PUSHER CRAFT NOS 23 1580 43 2530 24 1353
19 90138010 LIQUID CRYSTAL DEVICES (L.C.D) NOS 17333743 1386 26057445 1332 32259073 1375
20 84148011 GAS COMPRESSORS OF A KIND USED IN AIR-CONDITIONING NOS 3823260 1424 3747900 1451 4339697 1500
21 31021000 UREA WHETHER OR NOT IN AQUEOUS SOLUTION KGS 6.431E+09 12199 4950464418 9135 997574591 1503
22 85258090 OTHER NOS 22125442 848 44324266 1433 46537299 1562
23 85176930 ROUTERS NOS 2886284 861 4328343 1088 7944951 1650
24 85285100 OF A KIND SOLELY OR PRINCIPALLY USED IN AN AUTOMATIC DATA PROCESSING SYSTEM OF HEADING 8471 NOS 4754750 2149 5586981 2366 4053136 1656
25 87089900 OTR PRTSANDACCSSRS OF VHCLS OF HDG 8701-8705 KGS 23404488 1393 27462180 1596 31507878 1700
26 29349900 OTHER HETEROCYCLIC COMPOUNDS KGS 7062428 1364 6788217 1379 9082746 1758
27 87141090 PARTS AND ACCESSORIES OF MOTORCYCLE EXCL. SADDLE KGS 69787667 2129 63864893 1916 63759244 1767
28 85423100 MONOLITHIC INTEGRATED CIRCUITS - DIGITAL NOS 939267827 1164 1401010855 1625 1496791865 1808
29 29420090 OTHER DILOXANIDE FUROATE, CIMETIDINE, FAMOTIDINE NES KGS 18055433 3118 13752170 3684 9686946 1817
30 85044090 OTHERS NOS 78521240 1219 63747741 1326 88510079 1837
31 29339900 OTHER HETERDCYCLIC CMPNDS WITH NITROGEN HETRO ATOM (S) ONLY KGS 7734199 947 8590375 1096 12464621 1839
32 84733099 OTHER KGS 8515618 2337 5545755 2219 4194291 1873
33 85076000 LITHIUM-ION NOS 12419657 278 35148809 1228 99240089 1960
34 39269099 OTHR ARTICLE OF PLASTIC NES KGS 46611044 1121 57035276 1561 79043089 1965
35 84261900 OTHR(TRNSPRTR CRNS,GANTRY CRNS,BRDG CRNS) NOS 56 356 308 382 728 1966
36 84715000 DIGITL PROCESNG UNITS EXCL OF SUB HDNGS 847141 AND 847149,WH/NOT CONT ONE/TWO TYPS OF UNI,LIKE STORG/INPUT/OUTPUT UNITS NOS 524759 1773 713089 2145 634908 2104
37 85030090 PARTS OF OTHR ROTATING ELECTRC PLANTS KGS 10701267 1058 11989344 1587 12565718 2159
38 89052000 FLOATNG/SUBMERSIBLE DRLLNG/PRDCTN PLTFORMS NOS 0 0 2 2449
39 27040090 OTHER COKES OF COAL TON 1946843 2444 2133593 2176 2224068 2616
40 71069100 UNWROUGHT SILVER KGS 1766588 6722 711248 2302 724111 2699
41 85176990 OTHR APARTUS,FR CARRIER/DIGITAL LINE SYSTM NOS 5900872 1465 16591785 2650 19130063 2958
42 98010013 POWER PROJECT KGS 135977606 7708 74061069 4655 77911807 4056
43 89059090 OTHER UNDER HDNG 8905 NOS 8 3462 23 4954 344 4523
44 31053000 DIAMONM HYDRGNORTHPHOSPHT(DIAMONM PHOSPHT) KGS 1.94E+09 5654 3603181150 11103 2566572000 5967
45 85176290 OTHER NOS 4285517 3602 19348185 6051 16448879 6009
46 85299090 OTHE PARTS FR OTHR USE KGS 39490049 4199 33002649 5015 55492644 6198
47 85177010 POPLTD, LOADED OR STUFFD PRNTD CRCUIT BRDS KGS 628347 606 2657050 1654 6250127 6540
48 84713010 PERSONAL COMPUTER (LAPTOP,PALMTOP,ETC) NOS 5899809 11970 6971964 13851 5318341 13365
49 85414011 S0LAR CELLS/PHOTOVOLTAIC CELLS WHETHR OR N0T ASSEMBLED IN M0DULE/PANEL NOS 113561871 3713 163024355 12987 281061054 18875
50 85171290 OTHER NOS 153517651 38082 118070499 34564 68648955 24198
(Source; DGCIS)
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