Comments
China may soon resume imports of oilmeal and buy more pharmaceuticals, marine products and buffalo meat in a bid to narrow the widening trade gap between the two countries.
The two sides signed three memorandums of understanding (MoU) on Monday to facilitate exports of the items identified as priority by India.
“Since China agreed to sign MoUs for facilitating import of items of primary interest to India, we are hopeful that this time the country is more serious about bringing down impediments so that our exports could rise. While we have been pushing our case with China for some time, nothing concrete had happened till now,” a Commerce Department official told Business Line .
India’s trade deficit with China widened to $40.8 billion in 2012-13 from $39.4 billion in 2011-12, despite a 10 per cent contraction in total trade during the year.
The Commerce Department had stepped up pressure on the Chinese Government to take some credible steps this time during the Chinese Premier’s visit to increase imports from India by breaking down barriers.
The MoUs have been signed as part of Premier Li Keqiang’s visit to the country.
India hopes to export more pharmaceuticals to China, which is one of the largest markets for low-cost generic medicines, with easier registration norms facilitated by the MoU signed between the pharmaceuticals body of China and drug export body Pharmexcil in India.
Export of rapeseed oil to China, which was stopped last year due to chemicals found in the packaging, may also resume with the Export Inspection Council of India and Chinese General Administration of Quality Supervision, Inspection and Quarantine signing an agreement on trade and safety of feed and feed ingredients.
Also, India sees a lot of opportunity for buffalo meat exports to China, which had banned Indian bovine meat due to concerns about Foot & Mouth Disease. India had been claiming that management of the disease in the country was scientific and as per internationally accepted standards.
Finally, after long persuasion by India, a MoU has now been signed between Chinese General Administration of Quality Supervision, Inspection and Quarantine and Agricultural and Processed Food Products Export Development Authority (APEDA), which will pave the way for exports from India.
According to estimates made by APEDA, India’s export of bovine meat to China could touch $1 billion in the first two years itself.
The sharp fall in fishery exports from India to China following imposition of new testing requirements is also likely to get reversed. The Marine Products Export Development Authority (MPEDA) and its Chinese counterpart have signed a MoU on co-operation for import and export trade of fishery products. This could lead to the China accepting quality certificates given by MPEDA that would lower compliance costs and boost exports.
People contact
In a bid to enhance people-to-people contact, India and China also signed an agreement to facilitate co-operation and linkages between cities and States/provinces.
The two sides also agreed to conduct the Kailash-Mansarovar Yatra every year between May and September with the Chinese side saying that they would make further improvements to the existing facilities for pilgrims.
Besides, in a move that is likely to facilitate smooth communications, China has agreed to assist India in renting wireless sets and local SIM cards for those going on the pilgrimage.
amiti.sen@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.