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Amid a slowdown in economic activity in China, India’s exports to its northern neighbour dropped 33.4 per cent to $5.9 billion during April-July period at a time the country’s overall exports rose 20.1 per cent. China became India’s fourth largest export destination during the period, slipping from the second position during the same period a year ago.
Multiple shocks have hit China’s economy, including the drag on consumption from the zero-Covid policy, the prolonged impact of the property sector downturn and declining export demand, all of which have slowed down economic activity.
While exports of petroleum products such as naptha to China rose 81 per cent to $1.2 billion during April-July due to elevated crude oil prices, shipments of organic chemicals (-38.3 per cent), iron ore (-78.5 per cent) and aluminium products (-84.2) saw sharp decline. However, China increased its imports of non-Basmati rice (141.1 per cent) and marine products (18.7 per cent) during the period. A cut in steel output in China has also led to sharp dip in iron ore exports from India.
