Although the trade deficit really annoys India, and this trade deficit has lasted for decades, India has also made a lot of efforts to reverse this trade deficit. First, he put forward the plan of manufacturing in India. Promote the manufacturing industry in your country. However, this plan seems to be unsatisfactory, because when it was launched in 14, India's trade deficit with China was $37.8 billion, but by the end of 20 17, it had become $5 16 in just four years, so the average annual trade deficit increased by 2 billion.
In fact, they want to follow the old road of China and become the next world factory, which is their dream. But the advantages of China's manufacturing industry are completely different from those of Indian manufacturing industry. First of all, let's not talk about technology. I think China people have the virtue of hard work. They will pay more to support their families. Moreover, some parents will work harder to make money just to give their children a better environment. So I think India can't compare with China in this respect.
So if the deficit can reach 52.6 billion dollars, why are they still so rich? Because they have certain foreign exchange reserves, foreign capital will be injected into India every year, and about $30 billion will flow into securities and real estate, as well as tourism. Moreover, there are many overseas Chinese in India, and the annual remittance can be more than 20 billion US dollars. So even if the trade deficit is serious, you can still have a little foreign exchange.