Need to reduce trade deficit with China: PM

NEW DELHI: Prime Minister Manmohan Singh has pitched for greater Indian exports to China to reduce the trade deficit between the two countries and expressed confidence that the bilateral trade would surpass $100 billion by 2015. “I am confident that we will surpass our bilateral trade target of $100 billion dollars by 2015, but we have to make more efforts to promote greater Indian exports to China to reduce the trade deficit,” Singh said in an interview to China’s state-run Xinhua news agency.

He said during Chinese Premier Wen Jiabao’s visit to India in December last year, the two countries had agreed to a series of measures to broad base and balance our trade and economic cooperation . In 2010, bilateral trade between the two countries was in excess of $60 billion with the balance of trade tilting heavily in favour of China. The trade deficit for India for year 2010 stood at more than $20 billion. In 2009, it was $15.87 billion while in 2008 the trade deficit was $11.18 billion.

“The peaceful development of India and China will strengthen BRICS as well as be good for the global economy,” Singh said. He said as the two largest developing countries in the world, India and China bear an important responsibility of ensuring their all-round and sustainable socio-economic development. On the BRICS summit in Sanya, the prime minister said the member countries should combine their strengths and continue to enhance coordination on major global issues.

“BRICS countries have huge potential individually. We should aim to combine these strengths and pool them together,” he said. BRICS is an acronym for the grouping that comprises Brazil, Russia, India , China and South Africa. Singh said as two large and broadbased economies India and China were contributing significantly as engines of economic growth in the world. “We are both witnessing rapid growth, addressing the aspirations of our peoples and stimulating global demand ,” he said.

The prime minister noted that China and India were working together in various international fora on issues of interest to them and to other fellow developing countries. “Our shared objective remains to ensure sustainable and balanced growth of the world economy and employment creation,” he said. Singh said BRICS was a relatively new grouping, and the contours of its cooperation were in the process of evolution .

Noting that BRICS has done well despite being such a young grouping, he said regular summit meetings have enhanced mutual understanding and cooperation at all levels and across a wide range of sectors. “We should continue to enhance coordination on major issues such as the nature of the world economy we wish to see, a democratic and equitable world order, global governance reform and issues like food and energy security and climate change,” Singh said. Singh stressed on sharing experiences on the management of large urban cities.

“We should use the opportunity provided by the presence of all the BRICS countries on the UN Security Council to shape and guide the international discourse on issues of importance to us,” he said. Singh welcomed South Africa's entry into the grouping and said that its presence will lend weight to BRICS and introduce the African perspective to the burning issues of the current times. “South Africa is a valued friend and partner of India. It is a large and vibrant economy and plays an important role in global affairs,” he said.