China has for the first time agreed to balance trade: Suresh Prabhu
As there can still be some deterrents like regulatory issues, the Chinese authority recently agreed to facilitate meetings of Indian exporters with Chinese regulators.
By Shantanu Nandan Sharma, ET Bureau | Updated:
BCCL
Commerce and Industry Minister Suresh Prabhu tells Shantanu Nandan Sharma the Chinese authority last month agreed to import more from India by extending better market access and solving regulatory issues. Edited excerpts of the interview:
On India’s growing import from China
Since the time of (former prime minister) Rajiv Gandhi’s visit to China (1988), successive Indian governments have tried to increase bilateral trade with China. In a meeting with the Chinese Commerce Minister (Zhong Shan) in New Delhi on March 26, China for the first time has agreed to balance its trade with India and not just to increase it. There’s a clear difference between balancing the trade and increasing the trade. So our new focus is how to balance the trade.
On the modalities for balancing the trade
As there can still be some deterrents like regulatory issues, the Chinese authority recently agreed to facilitate meetings of Indian exporters with Chinese regulators. Beijing has also promised to arrange meetings between Indian sellers and Chinese buyers. This will lead to a paradigm shift in India-China trade relations. The Chinese commerce minister repeatedly said in our meeting (on March 26) that his priority would be to increase Indian exports to China. In November, there will be an exhibition in China where only Indian sellers and Chinese buyers are scheduled to meet.
On China’s new manufacturing thrust in India
China has recently agreed to set up industrial parks in India. This means that many of the Chinese products that are now imported to India will be manufactured here. This will not only decrease India’s trade deficit but also create a more balanced trade. Also, the move will create new jobs in India. I am hopeful that China will start manufacturing on a magnitude that’s not even imaginable for us. That’s how they move. It will naturally create a supply chain in India and also a new ecosystem altogether. The benefits are unquantifiable. And all these are being promised by a minister (Zhong Shan) who is also one of the senior-most political functionaries in China. And it’s not an oral statement; it’s on a signed document.
On India’s growing import from China
Since the time of (former prime minister) Rajiv Gandhi’s visit to China (1988), successive Indian governments have tried to increase bilateral trade with China. In a meeting with the Chinese Commerce Minister (Zhong Shan) in New Delhi on March 26, China for the first time has agreed to balance its trade with India and not just to increase it. There’s a clear difference between balancing the trade and increasing the trade. So our new focus is how to balance the trade.
On the modalities for balancing the trade
As there can still be some deterrents like regulatory issues, the Chinese authority recently agreed to facilitate meetings of Indian exporters with Chinese regulators. Beijing has also promised to arrange meetings between Indian sellers and Chinese buyers. This will lead to a paradigm shift in India-China trade relations. The Chinese commerce minister repeatedly said in our meeting (on March 26) that his priority would be to increase Indian exports to China. In November, there will be an exhibition in China where only Indian sellers and Chinese buyers are scheduled to meet.
On China’s new manufacturing thrust in India
China has recently agreed to set up industrial parks in India. This means that many of the Chinese products that are now imported to India will be manufactured here. This will not only decrease India’s trade deficit but also create a more balanced trade. Also, the move will create new jobs in India. I am hopeful that China will start manufacturing on a magnitude that’s not even imaginable for us. That’s how they move. It will naturally create a supply chain in India and also a new ecosystem altogether. The benefits are unquantifiable. And all these are being promised by a minister (Zhong Shan) who is also one of the senior-most political functionaries in China. And it’s not an oral statement; it’s on a signed document.
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