Analysis of Import and Export Structure of Sino – Indian Service Trade

Analysis of Import and Export Structure of Sino - Indian Service Trade

(A) total trade in services

Since entering the 21st century, the trade in services between China and India has generally enjoyed rapid development. The total volume of China’s trade in services has increased from 66 billion U.S. dollars in 2000 to 470.6 billion U.S. dollars in 2012, an average annual growth rate of 17.7% 8.6 percentage points higher than the world average. The total volume of Indian trade in services increased from 35.9 billion U.S. dollars in 2000 to 269.4 billion U.S. dollars in 2012, an average annual growth rate of 18.2% (excluding the average annual growth rate of 19.8% in 2012) Faster than the world average of 8.1 percentage points over the same period. Although India’s total trade in services is lower than that of China, its growth rate is faster than that of China. As can be seen from Figure 1, the growth trend of trade in services between the two countries was similar between 2000 and 2010, basically in parallel. In 2008, due to the impact of the U.S. economic crisis and the global economic downturn, the trade in services between the two countries dropped sharply ; Rapid recovery after 2009, but also showing a trend of high-speed rise; but since 2010, India’s service trade growth slowed down significantly.

(B) trade in services import and export balance

In view of the difference in import and export of services trade, although China has continuously expanded its total trade in services, it has seen a trade deficit of 13 consecutive years. In particular, its deficit has been continuously expanding in recent years at the rates of 1.54, 1.50 and 0.63 respectively, Year 2009,2011 and 2012 respectively, the deficit increased by 34.8 billion US dollars, 33 billion US dollars and 17.9 billion US dollars. The deficit amount in 2012 was as high as 89.7 billion U.S. dollars, with service imports accounting for 60% of the total import and export volume. Trade in services in India also remained in a deficit situation until 2003, but then started to experience a surplus. In 2008, the trade surplus was as high as 18.9 billion U.S. dollars. In 2012, trade surplus amounted to 13 billion U.S. dollars and service imports accounted for 48% of total imports and exports.

(C) the proportion of service trade in GDP

Service trade in China and India started relatively late. In the 1980s, China’s service trade accounted for only 1.5% -2% of GDP. India’s service trade accounted for about 3% of GDP. Since the 90s of the 20th century, the trade in services between the two countries has been developing rapidly. The proportion of service trade to GDP has been rising continuously. India has significantly increased its rate of increase over that of China. In 1994, the proportion of China’s service trade in GDP has increased by 5.65%, and has remained stable at about 6% since then, with the ratio in 2004 and 2007 being above 7%. Before 1997, the share of service trade in GDP in China was similar to that in China. Since 1998, the proportion has risen steadily, reaching 14.50% in 2012, an increase of 8.34 percentage points, far higher than that of China. This shows that the trade in services among Indian nationals Economic status is even more important. Of course, this is due not only to the rapid growth of India’s own service trade, but also to the rapid growth of China’s total trade in goods and gross domestic product.

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