Imbalanced trade not in India, China's interest: V K Singh

India on Thursday said "imbalanced" trade with China leading to a yawning USD 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 <g data-gr-id="56">agro</g>.

"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 (<g data-gr-id="54">Retd</g>) V K 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.

<g data-gr-id="50">Answer</g> 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 <g data-gr-id="53">said</g> "last year, trade deficit climbed even more to cross USD 47 billion" of the total USD 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 this year. Many Indian businessmen have opened their stalls at a colourful pavilion built by the Indian Embassy here.

Stating that "bilateral investment can emerge as <g data-gr-id="52">driver</g> 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 <g data-gr-id="45">India'</g> should be encouraged. The industrial parks in Gujarat and Maharashtra are important bilateral endeavours," he said pointing out two parks devoted for Chinese investors. “With more than 100 million overseas trips taken during last year, China has emerged as the leading source market for tourism in the world. India, however, receives a very small share of China’s outbound market.

“Tourist arrivals from China amounted to only around 180,000 in 2013. India would like to tap the vast potential of this market and to increase its share in the outbound travel from China,” he said. 

“Even more than the economic imperative, tourism cooperation is a potential game changer in bringing both of us closer and in enhancing mutual understanding and trust,” he said. Singh said the e-visa facility is a huge positive signal for greater tourism exchanges.

“I encourage our friends in China to take advantage of this facility, particularly those in Yunnan that enjoys even closer geographic proximity to India than Beijing,” he said.