Given the cost difference, imports of technology-led products are likely to remain high going ahead. In fact, an analysis from 2010 shows India’s trade deficit (imports less exports) with China touched a monthly high in September this year. Given the cost difference, imports of technology-led products are likely to remain high going ahead. China is likely to surpass Japan to become the second-largest patent applicant in the world (behind the US) in 2017. India’s broadening trade deficit with China and significantly rising share of the latter in the country’s overall imports is a concern, cautioned economists, given its adverse impact on India’s manufacturing sector.

Source: Mint November 30, 2017 03:11 UTC