India gets an economic blow from China
Shares
*Chennai: India gets an economic blow from China as Delhi's exports to Beijing have significantly dropped in 2019.*
According to the Maersk India Trade Report, India’s containerised exports to China grew slower by 20 per cent in the June quarter against 222 per cent growth in Q2 last year, Asian Age has reported.
This was mainly led by a a significant fall in the demand for India-made textiles and apparel, recyclable plastic and rubber, which were large export commodities in the corresponding period last year. China had imposed a ban on import of recyclable plastics and rubber, highlighting environmental concerns and a desire to clean up polluted areas. Similarly, imports from China also dropped by 22 per cent against 6 per cent growth last year.
China has also restricted import of certain types of waste paper due to environmental concerns. The restrictions led to a decrease in waste paper prices, in turn benefitting India, an importer of the commodity.
“Reduced bilateral trade between the US and China has led to various shifts in overall trade structures, with limited sourcing starting to shift from China to other countries such as Vietnam, Korea, Thailand, Bangladesh and Mexico. India has thus far not been a beneficiary, however we would hope that this will change,” said Steve Felder, Managing Director, Maersk South Asia.