China and India held their 8th high-level Financial and Economic Dialogue here on Friday to strengthen trade and economic cooperation, with the two fast-developing nations underlining the need for building more solidarity to adopt more responsible macro economic policies.
Shaktikanta Das, Secretary, Economic Affairs, accompanied by a delegation of officials from the Reserve Bank of India and Finance Ministry took part in the annual dialogue with the Chinese delegation led by Vice Minister for Finance Shi Yaobin.
India working to unify domestic market
“India is working hard to unify the domestic market, improve infrastructure, speed up manufacturing sector development and encourage more Foreign Direct Investment,” Mr. Shi said in his opening remarks at the meeting.
“We are happy to hear that in early August, India’s Goods and Services Tax reform has achieved historical breakthrough. In such a kind of background, we need to learn more from each other to coordinate micro economic policies, face more challenges and create more drivers for our development,” he said.
Exchanging ideas, status reports
The dialogue mechanism is aimed at exchanging ideas and status reports on the macro economic situation in both the countries in which officials of both the countries brief each other about their economic and fiscal policies and discuss issues of structural reforms and bilateral investment flows and economic cooperation.
This year’s dialogue is being held ahead of the G20 summit to be held in Chinese city of Hangzhou next month followed by BRICS, (Brazil, Russia, India, China, South Africa) summits in Goa in October which would focus mainly global on economic slowdown and initiatives to spur growth.
All-round progress in ties
In his address, Mr. Das said: “Bilateral relations between India and China have witnessed all-round progress in recent years.”
“This is a significant development and demonstrates the priority being attached by the two countries to our bilateral economic relations,” he said. “The annual dialogue is an important forum that enables us to revisit the entire range of bilateral relations and strengthen various areas of economic cooperation.”
Mr. Das said during Friday’s talks, the Indian side would highlight steps for further cooperation between the two countries with regard to trade, investment flows. It also would stress participation of both Indian and Chinese companies in each other’s economic development besides structural reforms and cooperation between the countries in multilateral forums like G20 and BRICS.
Greater role for G20, BRICS
Mr. Das said institutions such as the G20 and BRICS had come to play a greater role in evolving global and regional consensus on important key issue affecting global economy.
“I see a very good opportunity for a coordinated action between India and China. From the Indian side, we will also be highlighting the possibilities of further cooperation with regard to trade and investment flows,” he said. He has also said India is happy to note that China which holds the Presidency of the G20 has given greater focus on inclusiveness in the G20 summit agenda.
Idea of inclusiveness
“It is very important to point out that the idea of inclusiveness has been retained and has been given greater focus in G20 agenda under Chinese Presidency,” he said.
“Very rightly and in a timely manner, the Chinese Presidency is also giving importance to new industrial revolution on innovation as main drivers of economic growth in the current century,” he said.
“The world is at a critical stage and innovation and the new industrial revolution will be the key drivers to give extra momentum for the growth of the world economy. May I reiterate that we in India attach high priority to the bilateral relations with China,” he said adding that India was confident of strengthening the modalities of cooperation in major facets of economic and bilateral relationship.
More pressure on emerging economies
Mr. Shi said emerging market economies like India, China face greater pressure today.
“In global community, we keep hearing badmouthing of emerging economies here and there,” he said.
“So as two important emerging economies, China and India need to build more solidarity, air common voice, urge developed countries to adopt more responsible macro economic policies and lay the foundation and enabling environment for global economic recovery,” he said. He said both the counties should adopt a more pragmatic and open approach to explore more areas bilateral, fiscal and financial cooperation.
Need for more investment
“Our combined population is over 40 per cent of the global population. In 2015, total GDP of the two countries occupy 18.5 per cent of the global GDP. We are enjoying great market and development potential. However, by the end of 2015, our bilateral trade reached only $71.62 billion and China’s investment in India is about $4.07 billion.
“India’s investment in China is only $650 million. This data could hardly match good relations and potential and state of economies,” he said.
Mr. Shi has said China is working hard to scale up infrastructure investment though its Silk Road intuitive which is called One Belt and One Road (OBOR).
‘BCIM will help China, India’
Bangladesh, China, India, Myanmar (BCIM), which is part of the OBOR, will provide great opportunity for China and India’s economies to take off, he has said.
“With unprecedented economic opportunities, relevant departments should seize the opportunity to deliver the common consensus of two countries by adopting bold and innovative approaches to overcome the fiscal, financial as well as investment impediments to achieve higher, better economic trade and investment collaboration,” he said.
