Q5 · UPPSC current affairs · 15 October 2026 · News · India China Bilateral Trade Deficit

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Consider the following statements regarding India's bilateral trade with China:1.India's trade deficit with China has recently surged due to increased imports of critical intermediate inputs like Active Pharmaceutical Ingredients (APIs) and solar wafers.2.Bilateral trade deficits are exclusively managed through the Ministry of Environment, Forest and Climate Change.Which of the statements given above is/are correct?

A Both 1 and 2
B 1 only
C Neither 1 nor 2
D 2 only

Correct answer: (b) 1 only

Explanation

Statement 1 is correct as India imports major intermediate inputs like APIs and solar wafers heavily from China, driving the trade deficit past $100 billion. Statement 2 is incorrect because trade policy and deficits are handled by the Ministry of Commerce and Industry, not the Ministry of Environment, Forest and Climate Change.

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