Government preparing comprehensive export strategy for China

"If something drastic could not be done to boost exports, it would be difficult to bridge the trade gap," sources said.

Commerce and Industry Minister Nirmala Sitharaman, in her recent meetings with Gao Yan, Vice-Minister in the Ministry of Commerce of China. expressed concern at the growing trade deficit which was $36 billion in 2013-14.

The Minister has said that India has global competitive advantage in niche engineering products, pharmaceuticals, cotton textiles and home furnishings.

"However these products have a limited presence in the Chinese market due to various issues related to tariff barriers, regulatory and other complexities which impede India's exports," she has said.

Indian entities also face several regulatory hurdles and other complex domestic certification requirements to bid for government tenders and government sponsored IT projects in China.

The bilateral trade in 2013-14 stood at $65.9 billion.

India's main items of export to China include petroleum products, gems and jewellery, transport equipment, other raw materials and machinery. Its imports include electrical machinery and equipment, mechanical machinery and appliances, project goods and organic chemicals.

Overall, India's foreign trade rose over 18 times since the launch of economic liberalisation programme in 1991 while the trade deficit widened by more than 22 times.

The country's foreign trade (export and import) has increased with an annual average growth rate of 13.42 per cent from $42 billion in 1990--91 to $765 billion in 2013-14.