India on Tuesday pressed China to import more Indian goods, especially pharmaceutical and IT products, in order to reduce the trade deficit that India faces with China. Commerce Secretary Anup Wadhawan on Monday held talks with Zhang Jiwen, Vice Minister of General Administration of China Customs (GACC) on the widening trade deficit. The trade deficit in 2018, according to Chinese official data, climbed to $57.86 billion from $51.72 billion in 2017. India's exports to China went up to $18.84 billion in 2018, an increase of 15.2% compared to 2017.
Oil prices firmed on Monday after data showed China's economic slowdown was not as big as some analysts had expected, with supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) also offering support. International Brent crude oil futures were at $62.83 per barrel up 13 cents, or 0.2%, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $53.92 a barrel. Both oil price benchmarks were trading lower earlier in the session on fears that China's economic slowdown. China's economy grew by 6.6 percent in 2018, its slowest expansion in 28 years.
Shares of metal companies were trading under pressure with most of the frontline stocks like Tata Steel, Jindal Steel and Power (JSPL), Steel Authority of India (SAIL), Coal India and Hindustan Zinc touched their respective 52-week lows. The Nifty Metal Index, the largest loser among sectoral indices, was down 2.55% on Tuesday after the Chinese economy reported its slowest growth rate in the last 28 years. After witnessing a robust double-digit growth for three decades, the Chinese economy has been on a downturn over the years as the country deals with bad debts and a decline in exports, IANS reported.
China's GDP grew at 6.6% in 2018, its slowest rate since 1990, official figures showed on Monday. The moderate growth rate invoked fears of a slowdown in the world’s second largest economy. While the Chinese economy grew at 6.8% in 2017, its growth rate was just 3.9% in 1990. In the quarter ended December 2018, the economy grew 6.4% from a year earlier, down from 6.5% in the previous quarter, China's National Bureau of Statistics (NBS) said. The slow growth rate has also been partly driven by the effects of trade war with the US.
Seven of the world’s top 10 economies by 2030 will likely be current emerging markets. As per Standard Chartered Plc. forecasts, China is projected to be the largest economy by 2020 using purchasing power parity exchange rates and nominal GDP. India will likely be larger than the U.S. in the same time period while Indonesia will break into the top 5 economies. Asia’s share of global GDP, which rose to 28 percent last year from 20 percent in 2010, will likely reach 35 percent by 2030, matching that of the euro area and U.S. combined.
According to data from Dealogic, a global financial markets platform, India has pipped China for the first time in the last 20 years in terms of FDI inflows. While India attracted $39.515 billion from 253 deals, China garnered $33.02 billion from 397 deals so far in calendar 2018. In 2017, while India had attracted FDI worth $18.57 billion in 205 inbound deals, China’s FDI amounted to $32.49 billion in 383 inbound deals. The growth in India’s FDI inflow is attributed to stable macroeconomic environment and slowdown in the Chinese economy.