India can explore USD 82 billion export potential in 20 products in China, reveals data from ITC

Tapping this export opportunity can substantially reduce India’s trade deficit with China

by Samiksha

Chinese market holds an annual untapped potential of USD 82 billion in 20 goods where Indian exporters have competitive advantage, reveals latest data from Geneva-based International Trade Centre (ITC), the only multilateral agency committed to the mission of internationalizing small and medium enterprises.

These 20 goods, which are mentioned in the following table along with their 8-digit internationally accepted customs code, belong mainly to the organic chemicals, plastics and articles, engineering, iron & steel and agricultural sectors.

According to an analysis by MVIRDC World Trade Center Mumbai, India meets hardly 3.3% or USD 2.7 billion of the total annual import demand of USD 82 billion for these 20 products in China (figures are for 2018). India has a competitive advantage in these products as we export USD 15 billion worth of these goods to the world, which is 4.5% of our annual exports. These goods constituted about 17% of India’s exports to China in 2018. India can substantially reduce its trade deficit with China, which stood at USD 53.56 billion in 2018-19, by enhancing its market share for these products in that country.

Goods Posing Export Opportunity for India in China (USD Million)
HS Code	Product Description	China's Imports from the World (2018)	India's Exports to China (2018)	India's Exports to the World (2018)
29024300	p-Xylene	16,942	1,334	2,626
29053100	Ethylene glycol (ethanediol)	9,082	213	291
39012000	Polyethylene	8,826	260	370
84798999	Other machines and mechanical appliances	6,936	5	215
85177090	Electrical equipments	5,579	24	171
85389000	Electrical equipments	4,406	15	479
2023000	Frozen boneless bovine meat	4,240	0	3,323
39021000	Polypropylene, in primary forms	4,191	183	864
29012100	Ethylene	3,302	121	225
72024100	Ferro alloys	2,686	274	927
88033000	Parts of aircraft	2,271	15	1,638
84073410	Engines and other auto-components	2,264	0.009	166
29022000	Benzene	2,191	248	1,313
84839000	Machinery, Mechanical Appliances and their parts	2,126	3	169
29339900	Heterocyclic compounds	1,695	20	773
85369090	Electrical Machinery and equipments	1,212	8	221
84149090	Machinery, Mechanical Appliances and their parts	1,142	13	276
12074090	Sesamum seeds	1,067	8	508
24012010	Tobacco and tobacco products	1,039	1	406
72104900	iron and steel products	984	0.006	484
Total		82,182	2,745	15,447
Source: ITC, Geneva, compiled by MVIRDC WTC Mumbai

Speaking about the market opportunities for Indian exporters in China, Ms. Rupa Naik, Senior Director, MVIRDC World Trade Center Mumbai said, “In order to realize this untapped export potential, India and China must exchange trade delegation with members from these identified sectors. We must also create awareness on this opportunity among India’s micro, small and medium enterprises producing these identified products.”

Increasing our market share for these products in China will add further momentum to the growing exports of India in this country. India’s overall exports to China grew 5.39% to USD 11.57 billion in April-November 2019, even as our total exports to the world declined 2.0% during this period. India’s overall trade deficit with China declined 5% to USD 35.3 billion in the first eight months of the current financial year compared to USD 37.3 billion in the year ago period.