India in talks with China for market access to goods

The Dollar Business Bureau

Accepting that India’s bloating trade deficit with China is not a good sign, Commerce Minister Nirmala Sitharaman said that lots of efforts are underway at various levels to give more access to products from India in that country’s market.

"Bloating trade deficit is not a good news. We have various rounds of discussions with China and are still in talks so that India’s bulk drugs and IT & ITeS segments get more market access. We are in negotiations with that country and there are a lot of efforts underway at different levels," Sitharaman told journalists in New Delhi on Monday.

The Commerce Minister further said that companies in India have conveyed their concerns about the registration procedure in China that is difficult and consume lot of time. And in order to stop the entry of some of the Chinese products which are causing harm to the local industry, the government is taking steps in compliance with the WTO (World Trade Organisation).

"So on one hand we are trying to make imports where it is unsustainable, where it is injurious, we will stop and on the other hand for greater access, there is a work going on," she added.

India’s trade deficit with China has surged to $44.7 billion during the period of April-January 2015-16. Exports from India to China stood at $7.56 billion during the April-January period whereas imports to the country have increased to 52.26 billion during the period. Apart from China, India has a trade deficit with around 26 major nations such as, Australia, Iraq, Iran, etc.

In 2015-16, the country’s trade deficit dropped 14 percent to $118.35 billion.