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Bloomberg
India’s ballooning trade deficit with China is a big worry made worse by the rupee’s relatively strong performance in the region and slowing global demand for local exports, said Madhavi Arora, a lead economist at Emkay Global Financial Services Ltd.
China accounts for nearly 40% of India’s total trade deficit, and with developed countries discussing the possibility of a global recession in 2023, India’s exports may slow too. This is the “bigger worry†and something “that Modi has to take care of as we go ahead,†Arora said.
India’s bilateral trade with China rose by a third in the fiscal year that ended in March, even as PM Narendra Modi imposed curbs on business with China after the fighting in decades erupted on their border.