NEW DELHI: Prime Minister Narendra Modi is expected to pitch for concrete steps from China to check the growing trade deficit as India's neighbour has failed to act on a series of measures it promised over the past few years.
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Sources said the prime minister's team of officers has pointed to specific areas — ranging from pharmaceuticals to information technology and bovine meat — where China has not come good on its promises and continues with trade barriers that block India's exports. Similarly, Modi — who begins his first visit to China as PM on Thursday — is expected to press for investments in Gujarat and Maharashtra, for which an MoU was signed during Chinese president Xi Jinping's visit to India last year. China, which is India's largest trade partner, had proposed to invest around $20 billion in industrial parks over next five years.
Investments from across the border, where rules are expected to be simplified by the home ministry, is seen to be crucial to reduce the trade deficit by substituting imports with local production and also generate jobs. But, the widening trade deficit is the big worry as it is inching close to the $45 billion mark for the first time. China's decision to go slow on cotton imports in view of the large stockpile along with a surge in exports of iron and steel, has added to the deficit. Similarly, the mining ban has affected iron ore exports from India.
At the same time, several goods such as pharmaceuticals remain a no-go area for Indian exporters due to the rules erected by Chinese authorities. "You cannot complain about the rules being targeted against any country but they do impact India adversely," said a senior officer.
Source - Times Of India
www.sevagiri.com
Sources said the prime minister's team of officers has pointed to specific areas — ranging from pharmaceuticals to information technology and bovine meat — where China has not come good on its promises and continues with trade barriers that block India's exports. Similarly, Modi — who begins his first visit to China as PM on Thursday — is expected to press for investments in Gujarat and Maharashtra, for which an MoU was signed during Chinese president Xi Jinping's visit to India last year. China, which is India's largest trade partner, had proposed to invest around $20 billion in industrial parks over next five years.
Investments from across the border, where rules are expected to be simplified by the home ministry, is seen to be crucial to reduce the trade deficit by substituting imports with local production and also generate jobs. But, the widening trade deficit is the big worry as it is inching close to the $45 billion mark for the first time. China's decision to go slow on cotton imports in view of the large stockpile along with a surge in exports of iron and steel, has added to the deficit. Similarly, the mining ban has affected iron ore exports from India.
At the same time, several goods such as pharmaceuticals remain a no-go area for Indian exporters due to the rules erected by Chinese authorities. "You cannot complain about the rules being targeted against any country but they do impact India adversely," said a senior officer.
Source - Times Of India
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