It has expressed its concern to the huge trade deficit with China and its non-transparent subsidy at a recent session in the Geneva-based World Trade Organization, an official said. Fearing the impact of such measures on domestic industries, India referred to these in the Chinese trade policy review at the WTO this week.
The Geneva official underlined that India had reserved mentioning its huge bilateral trade deficit with China, the size and discomfort of which is growing over a lack of transparency in China's subsidy systems—factors that contribute to artificial prices and hurt local industries.
In the fiscal year 2023-24, India's exports to China reached USD 16.65 billion, while imports surged to USD 101.75 billion—creating a trade deficit in excess of USD 85 billion. Now, China has emerged as India's largest trading partner, with bilateral trade touching USD 118.4 billion in the same period, surpassing that with the United States by a slim margin.
At a meeting on July 17-19, the European Union joined India in demanding that China give up its developing country status in future WTO negotiations. Specifically, the EU expressed concerns over the lack of transparency in China's industrial policies, particularly the so-called import substitution and other measures that could distort competition.
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