India’s trade reliance on China and EU rising: UN trade body.

Syllabus: GS-III; Subject: Economy, Topic: Trade and External sector, Issue: Trade Dependency.

Context: India’s trade dependence on China and the EU is increasing as per UNCTAD.

Trade Statistics:

  • Shift attributed to geopolitical changes post-pandemic and Russia-Ukraine conflict.
  • India’s reliance on China and EU rose by 1.2%.
  • This came despite India’s efforts to cut reliance on China by implementing its flagship
    1. Production-Linked Incentive (PLI) scheme and
    2. Quality Control Orders (QCOs)
  • US decreased reliance on China by 1.2% in 2023, increasing ties with EU and Mexico.

Prelims Connect (Institutions in news)

UNCTAD:

·        The primary UN body for trade and development.

·        Established in 1964 by the UN General Assembly.

·        Aims to assist developing and least developed countries in integrating into the global economy.

·        Headquarters located in Geneva, Switzerland.

Functions:

·        Works towards promoting global partnership for development and coherence in economic policy-making.

·        Provides economic analysis, consensus-building, and technical assistance for sustainable development.

·        Reports: Trade and Development Report, World Investment Report, and Least Developed Countries Report.

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