Beijing: India has said it is important for China to address the ballooning trade deficit in the larger interest of bilateral ties to avoid the impression of an unfair relationship.

He said a way has to be found to address the issue of balance of trade, which is in favour of China.

"From the (Indian) government perspective the trade deficit is a matter of concern. One it is very large", Indian Ambassador to China, S Jaishankar, said answering questions from Chinese media.

He was addressing a press conference today at the sixth China International Auto Part Expo in which India is nominated as "partner country".

 "If the trade deficit comes out of a perception of unequal market access than it actually, frankly, it is not good for the relationship because it does not give an impression of a fair relationship”, the Indian envoy said.

 "So I think It is very important to find a way of dealing with this deficit issue so that it is good for the larger relationship”, he said.

He acknowledged that some Indian IT companies are getting contracts as a result of bilateral initiatives.

Jaishankar also said the Chinese government is responding to India’s feeling of ballooning deficit and it is in the mutual interest of the two countries in the current economic slowdown to do more business.

In the IT sector Indian companies are getting contracts, he said, adding even though it was not much of success in pharma sector yet.

The trade deficit for India in the first half of this year stood at USD 13.6 billion compared to USD 13.4 billion last year.

China has agreed to address it in the recent Commerce Ministers talks held in New Delhi.

Earlier speaking at the inauguration of the event on Friday, Jaishankar said while bilateral trade last year touched USD 74 billion, it has posed its own challenges in terms of a deficit which reached of USD 27 billion, "which is difficult to sustain or to defend".

"Market access for Indian companies is a major concern and that is precisely why it is important that so many of them are attending the event," he said.

About 80 top companies from the Indian top auto component industry are taking part in the India show being held at the expo.

Jaishankar said India-China economic relations are now maturing and moving from trade to investments. According to official estimates, Chinese investments in India have already crossed over USD 55 billion.

Jaishankar said a number of Chinese auto manufacturers are contemplating projects in India. Their success in such a competitive market depends on strong relationships with suppliers of components.      In the other direction, we are seeing more Indian investors take the plunge in China”, he said.

Kris Gopalakrishnan, who was elected as the President CII and leading a delegation of CEOs to the fair said it is very important the China and India focused on bilateral trade as the two are posting higher growth rates than the developed economies. "China and India represent a third of global population and growing economic powers. Per capita incomes are growing so is the consumption. That is an opportunity.  We can make this consumption model better with modern technologies”,
Gopalakrishnan said.

"Both the governments are coming together sending right signal to the industry to increase the revenues", he said.

Joint Secretary, Indian Ministry of Commerce, Asit Tripathy, answering a question on trade disputes between the two countries said India’s trade redressal mechanism is just and transparent and was following WTO rules.

Vice President China Chamber of Commerce for Import and Export of Machinery and Electronic Products, Wang Guiqing said it would be challenge for both the countries to reach the USD 100 billion target set by the leaders of both the countries for 2015.

"For this target to be met, we need some prerequisites. Firstly, we need a very positive, favourable trade environment and guard against protectionism", he said. The event concludes on Sunday.


Latest News from World News Desk