China has emerged as the largest source of India's imports in the last two years forcing the Commerce and Finance Ministries to take recourse to safeguard and anti-dumping measures.
India's imports from China almost doubled to $24.16 billion in April-December 2008-09 from $12.64 billion in the comparable period of 2006-07, according to the Reserve Bank of India (RBI).
"China continued to be the single largest source of imports, with a share of 10.3 per cent in total imports followed by Saudi Arabia, UAE, the US and Switzerland," the RBI said in its latest bulletin.
The country has imposed anti-dumping duty on imports of several products to guard domestic industries from surge in cheap imports.
The items include fabrics, nylon tyre cord, yarns and certain high-end stainless steel products. Several investigations are under progress.
Experts feel with recession in the US and Europe, the major markets for both India and China, the two Asian countries would see increased level of trade.
"Major markets for both India and China are in recession and this provides an opportunity for the two Asian countries to increase their exports and imports," Principal economist with CRISIL D K Joshi said.
The central bank further said that India's overall merchandise imports witnessed a growth rate of 44.9 per cent during April-September 2008, and thereafter it showed deceleration, reflecting the slowdown in industrial activities due to the global economic crisis.
India's imports grew by 14.3 per cent in 2008-09 to $287.75 billion from $251.65 billion in the previous fiscal.
Source : Business Standard