Yes, the trade deficit has occurred but not in the export from India to china instead of import from china to India.
According to sources, India’s trade deficit with China reached $1.2 billion in June from $2.4 billion in May.
If we talk about total import and export deficit then it comes down to $48 billion from $53 billion.
China and Malaysia are the two major countries with a rise of 70% in the exports from India. But at the same time, it goes down with the western countries like the USA and UK.
India export to Asian countries
India export to Asian countries increased due to the shortened in their COVID cases as compared to the western countries where COVID cases are rising day by day.
Along with China & Malaysia, Vietnam, Singapore, South Korea, and Japan are the major importers of Indian products. UAE, US, UK & Germany, and Brazil are the countries which show the decrease in the export from India.
India has also trying to be self reliable in all the range of products which they are importing from China through framing technical regulations.
The product that India imports from China are electronics, toys, air conditioners, organic chemicals, steel items, plastics, mineral fuels, fertilizers, mobile phones, telecom, power.
India has also received $2.38 billion, foreign direct investment from China. India and China trade will be going to fluctuate like this only for a couple of years more due to the independency of trading resources.