CIOInsider India Magazine
Sitharaman Flags China Trade Barriers, $100 Billion Trade Deficit
Finance Minister Nirmala Sitharaman identified China's limitations on Indian exports as a significant barrier to bilateral trade, cautioning that India's trade deficit with Beijing keeps expanding despite progress in diplomatic relations between the two nations.
During a discussion with the Atlantic Council alongside the International Monetary Fund meeting in Bangkok, Sitharaman stated that China's significant implementation of non-tariff barriers has hindered Indian goods from achieving increased entry into the Chinese market.
According to Sitharaman, our trade balance with China appears unfavorable and is increasing rapidly.
“China deploys non-tariff barriers without hesitation” and that constitutes “the largest obstacle in the trade between India and China.”
The finance minister highlighted phytosanitary regulations, aimed at curbing the transmission of plant pests and diseases, as a restriction impacting Indian exporters.
She stated that Indian goods, such as generic drugs, beef, and vegetables, encounter obstacles even though they have “immense” potential within the Chinese market.
India's trade deficit with China has surpassed $100 billion this year, highlighting the growing disparity between imports from Beijing and exports from India to the nation.
Sitharaman, however, mentioned that New Delhi has held back from applying retaliatory non-tariff barriers or countervailing duties on products from China.
The trade issues continue despite India and China trying to mend diplomatic ties after the deadly border clash in 2020, which resulted in extended tensions and limits on Chinese investments and business operations
The trade issues continue despite India and China trying to mend diplomatic ties after the deadly border clash in 2020, which resulted in extended tensions and limits on Chinese investments and business operations.
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Both nations have since initiated actions to alleviate border tensions and reinstate high-level diplomatic discussions, with Prime Minister Narendra Modi and Chinese President Xi Jinping aiming to stabilize bilateral ties.
