India and Chinese trade between the two countries reached a record $3.7 billion in the first seven months of the year, up from $3 billion in January, according to a report released on Tuesday.
India and China’s bilateral trade is expected to reach $8.5 billion in 2020, according the report, from $6.6 billion in 2015.
It is expected that China’s trade will grow at an average rate of 3.7 percent every year, the report said.
India, on the other hand, has been in the midst of a slowdown in trade with its neighbour.
In January, it reported that trade was down 2.9 percent in January compared to the same month in 2016.
According to the report from the International Trade Centre (ITC), the total value of trade between India and its neighbours has grown at an annualised rate of 1.6 percent in 2017 and 1.3 percent in 2018.
This year, India’s bilateral GDP growth rate is expected at 3.6-3.9 per cent, the ITC said.
This is lower than the average growth rate of 6.6 per cent that the country has seen in the past two years.
However, the ITC report said that the slowdown is being reversed by India’s neighbours, which are also experiencing growing economies.
“The slowdown in India’s economy is the result of several factors, but among the factors, one is the decline in investment and the other is the slowdown in exports,” the report says.
The country’s exports to China have grown at a faster rate than imports over the past decade.
In 2017, exports of goods and services grew at an even faster rate, the highest in the world, at a rate of 10.9.
However, imports from China have declined sharply over the last decade.
Moreover, exports from China are likely to be the largest source of India’s imports in 2020 and 2021, the survey said.
The report also showed that India’s exports from the Middle East and Africa grew by 13.3 per cent in 2017, the second fastest growth in the region, ahead of the South-East Asian region of Malaysia and Indonesia.
The data also showed a decline in exports from Russia and China, which is expected in 2021 to be at the low end of the spectrum, the same report said, adding that India is likely to have a lower export to imports ratio in 2021.
Although India’s GDP is expected grow at 7.2 percent in 2020 due to a large import surplus, the country is expected only to have 3.4 per cent of its trade deficit in goods and 5.3 in services, the India-China Trade and Investment Outlook (ITO) said.