India and China are set to discuss trade-related issues during a crucial meeting of a Joint Economic Group headed by their Commerce Ministers in New Delhi on August 27.

This is against the backdrop of a five per cent slump in bilateral commerce that negated last year’s high trajectory.

Chinese Commerce Minister Chen Deming would arrive in New Delhi on a two-day visit on August 26 to hold a comprehensive ninth round of talks with his Indian counterpart Anand Sharma the next day under the Joint Economic Group (JEG).

The eighth round was held here last year.

This year’s JEG meeting is regarded crucial as the two ministers are expected to address structural problems that are pushing the burgeoning bilateral trade into a negative territory.

Besides attending the JEG, Chen would participate in an interactive meeting with captains of the Indian trade and business, official sources here told PTI.

The JEG meeting is taking place against the backdrop of officials pointing to the seventh straight month of decline in bilateral trade volumes.

According to half-yearly data for this year released by China’s General Administration of Customs, India’s exports reached $12.91 billion, registering a decline of eight per cent compared to the same period last year.

Officials say this was mainly due to 50 per cent fall in Indian iron ore exports to China.

Trade deficit for India stands at USD 13.6 billion compared to USD 13.4 billion around the same time last year.

Also China’s exports to India were on decline and touched $26.57 billion in July this year, a decline of 3.3 per cent.

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