Beijing: India on Thursday said "imbalanced" trade with China leading to a yawning $47 billion trade deficit needs to be "pro-actively" addressed through improved market access for Indian products with competitive advantage like those in IT and agro.
"Such imbalanced trade is not in the long-term interest of either country. Both governments are committed to taking imaginative measures and rigorous effort in tackling this issue," Minister of State for External Affairs Gen (Retd) VK Singh said at the India-China Economic and Tourism Cooperation Forum.
"The deficit requires to be pro-actively addressed," he said at the forum, being held on the sidelines of China South Asia Fair in southwest China's Kunming city in Yunnan province.
Answer to the mounting trade deficit lies in improved market access for Indian products with competitive advantages such as IT products and services, pharmaceuticals, agro- products, and value-added textiles, he added.
However, he noted that the bilateral trade has not grown in a balanced way.
"While bilateral trade has grown, it is not balanced. Both sides have recognised the challenge posed by the growing trade imbalance and its negative effect on sustainability and diversification of bilateral trade," he said.
Singh said "last year, trade deficit climbed even more to cross $47 billion" of the total $70.59 billion trade, which officials say accounted for one-third of India's total trade deficit.
West Bengal's Finance Minister Amit Mitra and India's Ambassador to China Ashok K Kantha along with top Chinese officials took part in the meeting.
India is the country of honour at the annual five-day South Asia Expo in 2015. Many Indian businessmen have opened their stalls at a colourful pavilion built by the Indian Embassy in Beijing.
Stating that "bilateral investment can emerge as driver of our economic Sino-Indian economic partnership", Singh said he welcomes Chinese companies to partner in India's economic growth and development.
Singh said the 'Make in India' campaign provides Chinese firms the "golden opportunity" to build awareness of China's contribution to India's development.
"The Make in India campaign provides a golden opportunity for Chinese companies. The size of our market and its current stage of development make India a natural destination for Chinese companies.
"'Invested by China, Made in India' should be encouraged. The industrial parks in Gujarat and Maharashtra are important bilateral endeavours," he said pointing out two parks devoted for Chinese investors.
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