Press Information Bureau

Government of India

Ministry of Commerce & Industry

03-August-2011 18:13 IST

Balance of Trade with China

As per the current trend of trade between India and China, the bilateral trade is likely to reach the US$ 100 billion mark in next four years.

The share of India’s export in India-China bilateral trade as per the current trend is about 31%. With the continued efforts to increase our exports to China, this share is likely to increase.

With the increasing trade, the gross trade deficit may further increase. With a view to achieve balance in the bilateral trade, efforts are being made to diversify the trade basket with emphasis on manufactured goods. The issue of trade deficit was raised by the Indian side during the 8th session of India-China Joint Group on Economic Relations, Trade Science and Technology (JEG) held on 19th January 2010. As an outcome of JEG a Memorandum of Understanding was signed between India and China, where the Chinese side assured the Indian side that it would increase its imports from India. Indian Companies are encouraged to participate in major trade fairs in China to show–case Indian products in the Chinese market and increase engagement with Chinese companies.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Jyotiraditya M. Scindia, in a written reply in the Rajya Sabha today.

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Bilateral trade balance with China: measures to diversify exports and secure increased Chinese imports to reduce deficit. Efforts to balance bilateral trade with China concentrate on increasing India's export share and diversifying into manufactured goods to reduce a growing trade deficit; a Memorandum of Understanding following intergovernmental discussions secured a Chinese assurance to raise imports from India, while Indian companies are being encouraged to showcase products at major Chinese trade fairs to expand market access.