Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu, released a study by the Department of Commerce on India-China Trade. The report tries to analyze the magnitude, extent and plausible reasons of India’s rising trade deficit with China.
The Commerce Minister said that India’s trade relationship with China is unique and no other bilateral trading relationship evokes as much interest in India as the India-China trade relationship. From being a small trading partner of India in 2001, within a span of fifteen years, China has rapidly become India’s biggest trading partner. Trade between the two countries has been expanding but India’s trade deficit with China has been growing.
While releasing the study the Minister said that most industry associations want the Government to pursue a defensive approach to Free Trade Agreements (FTAs) and raise tariffs on the doctrine of domestic markets for domestic producers. Protectionist policies are on the rise globally. The global use of protectionist measures in 2018 was unprecedented with the trade wars looming between two of the largest economies of the world.
The study also underlines the opportunity available for India in increasing its services exports to China. Indices like Revealed Comparative Advantage (RCA) and Trade Complementarity Index (TCI) have been used to analyse the extent of India and China’s competiveness in this arena and the potential for the future.
Source :- Dailyshippingtimes.com