Trade deficit with China an issue of concern: Govt

The trade deficit with China is a matter of concern and the government is working for greater access of Indian goods and services in the Chinese market, the Lok Sabha was informed on Monday.

“The trade deficit with China is a matter of concern. We are discussing the issue with China for greater access for Indian products and services in the Chinese market," Commerce Minister Nirmala Sitharaman said during Question Hour.

The Minister said Prime Minister Narendra Modi had raised the issue of trade deficit with the Chinese authorities at the highest level and the government was working to reduce it.

The minister said China top​ped the list of 25 countries with which India has had a trade deficit in the past three years. The other countries include Russia, Australia, Saudi Arabia, Japan and South Korea, among others.

The countries with which India has a favourable trade balance include the US, the United Arab Emirates, Bangladesh and the UK, besides others.

Sitharaman said the government has taken a number of steps to overcome the trade deficit, which includes a New Foreign Trade Policy (2015-20), Merchandise Exports From India Scheme, the Services Exports from India Scheme and Niryat Bandhu Scheme.

She said India has exported merchandise and services worth $230.36 billion between December 2016 and May 2017 to various countries.

Of the total exports, in May alone, India exported merchandise and services valued at $37.44 billion, which is 4.40 per cent more than the previous month (April), she said.

Crude petroleum tops the list of 25 commodities in which India has a trade deficit, which includes gold, silver, pulses, vegetable oils, electronic components and telecom instruments, among others.