India's trade deficit with China mounts to USD 31.42 billion

In the face of declining bilateral trade - which was attributed to a host of reasons, including depreciation of Indian rupee, officials here are sceptical about the USD 100 billion target to be achieved by 2015, fixed by the top leadership of both the countries.

As per the preliminary data released by the customs, Chinese exports to India have climbed marginally to settle at USD 48.44 billion for the entire year, where as Indian exports to China dipped by a little under 10 per cent to USD 17 billion, causing a trade deficit of USD 31.42 billion to India.

The continued decline in trade will be a major challenge for the new Indian Ambassador Ashok K Kantha as flourishing trade was regarded as a major factor of stability in Sino-Indian ties.

Kantha took charge this month, succeeding S Jaishankar who was transferred to Washington as Indian envoy to the US.