‘Widening trade deficit with China not sustainable’

In 2012-13, India’s trade deficit with China was about $39 billion, gainst a deficit of $37 billion in 2011-12.

September 23, 2013 08:32 pm | Updated November 16, 2021 09:26 pm IST - NEW DELHI:

India, on Monday, asked China to provide more market access, asserting that the widening trade deficit was not sustainable in the long run.

“What is worrying for the government and Indian industry is that we have a large trade deficit. So, we need to collaborate with each other. Uneven trade like this is not sustainable in long run,’’ Commerce Ministry Joint Secretary Asit Tripathy said at the India-China Business Matchmaking Symposium, organised by the Confederation of Indian Industry (CII) here.

In 2012-13, India’s exports to China stood at $13.53 billion, while imports stood at $52.24 billion. The trade deficit was about $39 billion. This was against a deficit of $37 billion in 2011-12. “There are tax and market access related issues in China while exporting petroleum products, ores, minerals, plastic, dyes and others. In agriculture, a lot of products are going to China like sesame seeds, groundnut. Oil meals trade have disrupted,’’ he added.

Mr. Tripathy expressed hope that both sides would resolve all outstanding issues to increase shipments from India to China to bridge the huge trade deficit. “I am sure that in the coming days, we will handle it so that trade can grow. Products are excellent in quality and quite competitive in the world market. Indian products are of high quality and competitive at the world stage, so there is no reason why Chinese consumers and industry cannot look at it,’’ he said.

Chinese Trade Development Bureau Vice-Director General Jia Guoyong responded by saying that his government was taking all steps to increase imports from India. “We have a long-term strategy to enhance trade with India. We are optimising imports of hi-tech equipment and simplifying import management manners to facilitate imports. We are encouraging business delegation visit for import promotion mechanism,’’ Mr. Guoyong said.

Both sides also signed 15 MoUs worth $338 million for procurement of various products. The products included zinc concentrates and copper concentrates, cotton yarn, frozen fish/linter, cotton and cotton yarn, menthol, castor oil and guar gum, acrylic tow, Indian granite block and cedrus deodara seed.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.