Need to find solution to widening trade deficit with China: Sushma

December 21, 2018 19:43

India on Friday said there was a need to find a solution to its expanding trade deficit with China but largely expressed satisfaction over increasing trade and investment ties between the two countries.

After holding wide-ranging talks with her Chinese counterpart Wang Yi, External Affairs Minister Sushma Swaraj also hoped that China will provide support for market access to Indian goods and services.

Bilateral trade between India and China rose by 18.63 per cent year-on-year and reached a historic high of $84.44 billion last year. However, the trade deficit continues to remain high at $51.75 billion in 2017.

"Our bilateral economic ties have progressed well. While our bilateral trade is on the rise, we also need to find a solution to the continuously increasing trade deficit," Swaraj said in her media statement in presence of Wang.

She also thanked the Chinese side for specific steps taken by it in recent times to address the issue.

"We are confident that we will receive continuous support from the Chinese side so that we can increase our trade in a sustainable and balanced way," she said.

Swaraj and Wang held talks under the newly created framework -- High Level Mechanism on Cultural and People-to-People Exchanges -- which was agreed to during the Wuhan summit between Prime Minister Narendra Modi and President Xi Jinping.

She also hoped that China will continue to provide cooperation for market access to India's goods and services.

"Thanks to the economic reform carried out by China in the last 40 years, it has grown rapidly and became the second largest economy in the world. India too has had robust growth and is on the path of becoming a five trillion dollar economy by 2025," she said.

India has been voicing its concerns to China over the huge trade deficit for several years. Both sides have held several rounds of talks on the issue in the last few years.

The issue of trade deficit, which is in China's favour, was one of the main focus areas of the Wuhan summit in April this year.

India has been asking China to provide market access to its food and agro products, pharmaceuticals, IT and IT-enabled services (ITES), tourism and services in which it has proven strengths and significant global presence but minuscule presence in China.

It is not known whether the issue of trade deficit figured in the talks as Swaraj said she and Wang devoted two hours of their talks in deliberating on enhancing people-to-people contacts and cultural exchanges. -- PTI

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