Wednesday, July 16, 2014

India's trade deficit with #China mounts to $ 36.2 bn

In FY 2013-14 India imported $51,049.01 million and exported $14,829.31 million worth of goods to China.Thus the trade deficit stood at $36,219.70 million in favour of China.(Source; DGCI&S).

With a view to reducing trade deficit with China, efforts are being made to diversify the trade basket with emphasis on manufactured goods. The Government is also pursuing market access issues to tackle non-tariff barriers in the Chinese market at different fora. At the Ministerial level, there is a India-China Joint Group on Economic Relations, Trade Science and Technology (JEG) where trade related issues are taken up regularly. The next meeting of the 10th JEG is scheduled to be held in China in this year. Also, Indian exporters are encouraged to participate in major trade fairs in China to show-case Indian products in the Chinese market and increase engagement with Chinese companies. Participation of Indian exporters in trade fairs educates the Chinese importers about niche Indian products. Business to Business relations are encouraged through schemes such as Market Access Initiative (MAI)/Market Development Assistance (MDA).

Trade deficit can be reduced to sustainable levels through more exports from India to China as well as by China’s investing in building manufacturing capacities in India. In 2013, three MoUs were signed on products such as bovine meat, fishery products, pharma and an agreement was signed on feed and feed ingredients. During the recent visit to China in June, 2014, an MoU on Industrial parks has been signed. These measures are expected to boost exports and reduce trade deficit to some extent.

The information was given by the Minister of State (Independent Charge) of the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.