China Agrees to Address India's Trade Deficit Concerns

New Delhi (Sputnik): Minister of Commerce and Industry Suresh Prabhu and Minister of Commerce of the People's Republic of China, Zhong Shan, co-chaired the 11^th meeting of the India-China Joint Group of Economic Relations, Trade, Science and Technology in New Delhi on Monday.  

The joint group is the oldest and the most important dialogue mechanism between India and China. It is an important forum to address the bilateral trade imbalance.

"Indian Commerce Minister exhorted his Chinese counterpart for greater market access for agricultural products like rapeseed, soybean, basmati and non-basmati rice, fruits, vegetables, and sugar. Another commodity which could be exported from India to China is the high-quality pharmaceutical products," India's commerce ministry's statement read.

Chinese Commerce Minister Zhong Shan promised to address India's concerns about the growing trade deficit.

READ MORE: India May Replace China as Hub for US Business in Region – US Ambassador

"Chinese Minister Zhong Shan welcomed Indian investment in China and promised to address the trade deficit between the two countries. The Minister highlighted the important issues discussed in the meeting liked two-way trade relations, preparations of an action plan, a greater focus on Regional Comprehensive Economic Partnership and e-dialogue. Shan also said that candid and effective discussions with India on trade relations can serve as the propeller for the growth not only between the two countries but in the entire region," the statement added. 

READ MORE: Chinese Mobile Phones Dethrone Samsung From Top Position in India

The increasing trade deficit with China has been a major concern for India. In 2016-17, India's imports from China amounted to $61.3 billion while exports were $10.2 billion. India has been pushing for the export of its IT and IT-enabled services to China and cooperation in the sectors of tourism and healthcare in order to narrow the trade deficit.