India and China after the Gulwan Valley clashes about two and a half years ago, the bilateral trade between the neighboring Asian economies continues to soar

Despite the border tensions between India and China after the Gulwan Valley clashes about two and a half years ago, the bilateral trade between the neighboring Asian economies continues to soar. The trade between Asia's two large economies has crossed $100 billion for the second year in a row in the first nine months of 2022, while India's trade deficit also climbed to over $75 billion. This is China's export to India climbed to 89 $6 billion, registering an increase of 31%, while India's exports in the past nine months to 1390 $7 billion, registering a decline of 36. 4% India china bilateral trade hit a record high of over 125 billion dollars after relations touched a new low due to the standoff by the military in eastern The Dark. Reports say India's trade equation with China and other countries has been improving in recent years, with outbound shipments in some sectors rising faster than imports.

The major items of import are from China or electronic components, computer hardware and peripherals, telecom instruments, organic chemicals, machinery for dairy, electronic instruments, and bulk drugs. While intermediate goods account for more than a third of India's imports from China, capital goods constitute another 19 3%, with Telecommunic power sector equipment being the key driver. Experts say India's dependence on some Chinese goods can be attributed to China's competitiveness being a manufacturing hub and having price competitiveness due to economies of scale. The Chinese government also gives subsidies to industries to help them compete on a global scale. India has come out with Production Income center schemes for different sectors in the last few years, which will help reduce its dependence of India on some imported items from China.