India relaxes border trade norms with China
Ahead of Prime Minister Narendra Modi's visit to China, India on Saturday relaxed the border trade by raising the transaction value of consignments between the two countries.
"For border trade between India and China, the CIF (Cost, Insurance and Freight) value per consignment is being increased from Rs 1,00,000 to Rs 2,00,000 in case of Nathula, while for Gunji and Namgaya Shipkila, the existing CIF value limit of Rs 25,000 is being enhanced to Rs 1,00,000," the Directorate General of Foreign Trade said in a notification.
Traders at the border areas primarily import carpets, readymade garments, blankets, shoes, jackets and quilts and export mostly vegetable oil, rice, processed food, canned food, textiles and copper items.
Modi is scheduled to undertake a three-nation tour of China, Mongolia and South Korea this month.
China is a major trading partner of India, but New Delhi has serious concerns over widening trade deficit between the two countries. India's trade deficit with China climbed to a whopping $ 37.8 billion last year whereas bilateral trade stood at $ 65.85 billion in 2013-14. India will take up the issue and greater market access for domestic products during the Prime Minister's visit.