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India: Trade deficit with China to double.


Date: 08-04-2015
Subject: India: Trade deficit with China to double
India's trade deficit with China could nearly double to $60 billion in the next two years if the two partners do not address market access constraints and nontariff barriers faced by Indian goods in the neighbouring country, the department of commerce cautioned in the foreign trade policy statement released last week. The statement came ahead of Prime Minister Narendra Modi's expected visit to Beijing in the second week of May.

The trade deficit widened to $36 billion in 2013-14, accounting for a quarter of India's overall export and import gap. While India's exports to the bigger Asian rival fell 18.6% in April 2014-January 2015, imports grew 17.16%.

According to the government, a series of non-tariff barriers block India's exports of pharmaceuticals, IT/ITES and agri commodities including bovine meat, oil meals and cake, tobacco, rice, fruits and vegetables to China. India has also been pushing China to allow Indian companies to bid for tenders in its state-owned enterprises.

Source : freshplaza.com

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