Sharma is expected to impress upon Commerce Minister Chen Deming that specific measures are needed to boost Indian exports to China, especially in the area of pharmaceuticals and information technology. The meeting is scheduled for August 27.
Trade deficit between the neighbours widened to $40 billion last year. At $17.9 billion, India's exports to China in 2011-12 were less than a third of the $57.55 billion worth of goods it imported from the country.
"We have been taking up the issue of rising trade deficit with China for several years now," an official told ET, adding, "Although we have had assurances from the highest level, including the Chinese Premiere, that steps would be taken to address it, nothing has happened on the ground."
India, which has a high current account deficit, is determined to see some measures being taken by Beijing, which accounts for over a fifth of Delhi's total trade deficit. "We have already identified some restrictions that China could address to help India increase exports," the official added.
India has asked China to remove procedural bottlenecks in trade, including time-consuming licensing procedures that Indian drugs and pharmaceutical companies often face. It also wants Beijing to increase import of IT and IT-enabled services from India.
At a workshop organised by the National Security Council Secretariat last year, concerns were raised about India's growing dependence on China and forecasts that Beijing could account for 75% of india's manufacturing consumption in the next five years.
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3 Comments on this Story
Pushpak dalla3029 days ago
fully agreed with Morgan to you - india can and india will do if damm government is good.
Morgan3029 days ago
Any agreement should be reciprocal so Indian companies have an even playing field. That said, I can't really see what India currently has apart from mining and agriculture that China would want. Would love to see some ideas.
Raj3029 days ago
Only fools believe chinese "talk" and "promises".
India must respond in kind to Chinese barriers by curbing Chinese imports and Chinese companies.
Only when India responds in kind will China take notice, till then they will continue to exploit India.
Without reciprocal Trade, India must not allow any Chinese goods into India. Nothing that is made in China cannot be made in India.