Bridging the widening trade deficit with China through greater market access for Indian products like pharmaceutical and agriculture will be on top of the agenda of Commerce Secretary S.R Rao during his three-day visit to Beijing beginning tomorrow.
Rao, who will be leading a team of government officials, is also expected to discuss other issues related to the services sector.
“Indian IT industry face problem in doing business in China. India needs more market access in IT sector as well besides pharmaceutical and agriculture,” an official said.
While India’s exports to China were only $13.52 billion in 2012-13, its imports from that country during the period aggregated $54.3 billion, leaving a trade deficit of $40.78 billion.
India and China are aiming to take the two-way trade to $100 billion by 2015.
At different fora the government and the domestic industry have flagged concerns over the ballooning trade imbalance with China and have demanded greater market access for Indian products.
The official said Rao’s visit to Beijing assumes significance on the back of the recent visit of Chinese premier Li Keqiang who has offered to initiate talks for a free trade agreement with India.
He had said the world’s second biggest economy was willing to give more market access to Indian products to bridge the widening trade deficit.
“China is a very important market for India. Indian traders should explore more opportunities in China,” the official added.
The top five items of imports from China are electrical machinery, mechanical machinery, project goods, chemicals and iron and steel. Also, in the past few years, imports of power and telecommunication equipment have seen a huge surge.
India’s exports to China comprised largely of Iron ore, cotton, chemicals and raw materials. China accounts for a fifth of India’s global trade deficit of $190.9 billion.