In a concerted effort to combat India’s burgeoning trade deficit with China, the country’s trade ministry is forecasting a boost in exports to China over the next 4-5 months, driven primarily by shipments of marine products and gems and jewellery, according to insider sources.
A senior government official stated, “We are actively engaged in outreach initiatives, utilizing various events and trade missions. In the case of marine products, previous challenges, particularly related to shrimp exports, have been successfully addressed, resulting in a noticeable uptick in exports. China had imposed suspensions on imports from 99 Indian seafood processing and exporting units in 2020 due to Covid-related concerns. However, persistent dialogue and the diligent efforts of the Marine Products Export Development Authority (MPEDA), coupled with China’s post-Covid economic opening, led to the suspension being lifted in 2023.”
India’s exports to China encompass a range of marine products, including frozen shrimp, fish, cuttlefish, squid, dried items, as well as live and chilled products, with frozen shrimp constituting the largest share of marine exports to China.
Furthermore, there has been a notable resurgence in gems and jewellery exports to China. As the Chinese market undergoes a gradual revival, the broader opening of China’s economy is expected to provide a significant impetus to Indian exports.
To comprehensively address the decline in exports to China across various sectors, the country’s commerce ministry is conducting an internal assessment to identify the root causes and formulate strategies for rejuvenating exports in those sectors.