India-China trade: An alarming $18 billion discrepancy
Subscribe to enjoy similar stories. India-China trade data for 2023 reveals a widening discrepancy, with India's reported imports from China falling significantly short of China's export figures, raising concerns over potential anomalies such as under-invoicing, misclassification, and inconsistent reporting practices.
In 2023, India's merchandise imports from China stood at $99.59 billion, which was 18.2% lower than the $117.68 billion worth of exports reported by China, according to the latest data from the World Bank's World Integrated Trade Solution (WITS) and the Directorate General of Commercial Intelligence & Statistics (DGCI&S). The discrepancy stood at 15.5% the previous year, with India's merchandise imports from China valued at $102.63 billion, significantly lower than the $118.50 billion exports reported by China, according to the same data sources.
The magnitude of these discrepancies indicates major anomalies, warranting closer scrutiny of the data reporting mechanisms. “While discrepancies in trade data can arise due to methodological differences, the magnitude of these gaps—particularly in textiles and clothing, iron and steel, electronics, and remaining categories—requires deeper investigation," said Ajay Srivastava, former trade service official and the founder of economic think tank Global Trade Research Initiative (GTRI).
“Addressing under-invoicing, misclassification, and data reporting practices is essential to ensure accurate trade accounting and mitigate revenue losses. Focused studies should prioritize sectors with the highest variance to identify and rectify anomalies," he added.
Spokespersons of the ministry of commerce and the Chinese embassy in New Delhi didn't respond to emailed queries. The
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