India to discuss trade deficit issue with China: Sharma

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Saurabh Gupta | 20 Aug, 2012
Worried over widening trade imbalance with China, India will discuss the steps to bridge trade gap with the neighbouring country during the visit of their Commerce Minister to India, scheduled from August 26, said Commerce and Industry Minister Anand Sharma in New Delhi.

"China is one of the largest trading partners, but at the same time there is issue of adverse balance of trade. We will look at steps that are required to be taken so that the trade remains healthy and becomes more balanced," Sharma told reporters on the sidelines of Hastkala function in New Delhi recently.

Adding Sharma said, "All the bilateral issues will be discussed. China is important as it is a strategic partner of India."

Chinese Commerce Minister Chen Deming would arrive in New Delhi on a two-day visit on August 26 to hold a comprehensive ninth round of talks with his Indian counterpart Anand Sharma on August 27 under the joint economic group (JEG).

India's main items of export to China include petroleum products, gems and jewellery, transport equipment, other raw materials and machinery. And imports include electrical machinery and equipment, mechanical machinery and appliances, project goods and organic chemicals.

India-China trade volume witnessed a 4 percent slide for the first half of FY'12-13 compared with last year, on the back of overall economic slowdown. As on June 30, 2012, the bilateral trade with India stood at USD 34 billion, which was 4 percent down.

The volume of trade between the two countries was USD 73.9 billion in 2011.

The issue of trade surplus being in favour of China has been taken up by the Indian government with the Chinese authorities earlier as well. Last year the leaders of both India and China set a new bilateral trade target of USD 100 billion by 2015 to bridge the trade deficit.