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India Urges China to Open Markets For Trade

“When people make a price comparison and want to move towards the cheapest goods, those are usually Chinese products.”

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Sampad Yadav, the owner of a shop carrying electrical goods in a market in Gurugram near New Delhi, says people are drawn to Chinese products such as LED lights because they are more competitively priced. VOA
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Sampad Yadav, who sells electrical goods in a shop in the business hub of Gurugram on the outskirts of New Delhi, says Chinese goods such as LED lamps are popular with customers. “When people make a price comparison and want to move towards the cheapest goods, those are usually Chinese products.”

As in many other countries, Chinese products such as lamps, electronics, smartphones and engineering goods from the manufacturing giant have flooded Indian markets.

However, India has long fretted that areas in which it is strong such as generic drugs and Information Technology services, which make up some of its main exports to Western markets, remain shut out of China. That has made it difficult to bridge a ballooning trade deficit of about $50 billion between the two countries.

ALSO READ: China emerges as one of the fastest-growing sources of Foreign Direct Investment (FDI) into India

But there is optimism this could change following a meeting this week between the commerce ministers of the two countries in New Delhi.

“The Chinese side have agreed to work on the issue, prepare a roadmap to bring the trade to balanced level over a period of time,” Indian Commerce Minister Suresh Prabhu said after discussions with his Chinese counterpart, Zhong Shan.

Trade experts hope the growing tensions on trade issues between the United States and China will prompt Beijing to open up its markets more to Indian exports. “I think China is definitely under pressure now, looking into the kind of initiation which has happened against China,” says Ajay Sahai, who heads the Federation of Indian Exports Organization.

The meeting between the Indian and Chinese commerce ministers this week came amid efforts to de-escalate tensions between the Asian neighbors following a period of rocky ties and a tense 70-day face-off between their troops in the Himalayas last year.

india-china trade
Products such as lights and lamps sold in Indian shops are predominantly Chinese.Products such as lights and lamps sold in Indian shops are predominantly Chinese. VOA

Despite a long-lingering boundary dispute and an often-fraught diplomatic relationship, trade ties between the Asian giants have gained significant momentum and China is now India’s largest trading partner. Bilateral trade in 2017 topped $80 billion rising by more than 20 percent over the previous year.

But worryingly for New Delhi, the trade deficit remains high despite a marginal growth in Indian exports – they add up to about $16 billion versus Chinese imports into India of about $68 billion.

ALSO READ: India China’s Fight Over the Doklam Plateau Explained

Market access a key issue

India exports mainly raw materials like iron ore, copper and cotton yarn to China. “In whatever value-added exports where we are competitive, unfortunately, the market is not open for us,” says Sahai.

However, China has promised to give greater market access to Indian goods, particularly pharmaceuticals and agricultural goods such as rice, as well as service exports, according to the Indian commerce minister. “They have decided to work in a way that will address security issues from their side as well as introduce Indian companies to those who can buy these products in China,” says Prabhu.

New Delhi, which is trying to ramp up domestic manufacturing, is also urging China to manufacture more goods exported to India within the country.

india-china trade
Generic drugs produced by Indian pharmaceutical companies make medicines affordable, but India says that China does not provide market access to its generic drugs. VOA

ALSO READ: China is likely to get involved if India disrupts $46 billion China-Pakistan Economic Corridor (CPEC) in restive Balochistan

Whether the promised actions translate into concrete outcomes remains to be seen. But exporters are hopeful. Sahai points out that China has invited Indian traders to what is being billed as the country’s first importers fair to be held in Shanghai later this year – it is being showcased as a measure to further open up China’s market.

The positive tenor of talks between the two countries comes days after U.S. President Donald Trump announced plans to impose tariffs on Chinese imports valued at $60 billion.

New Delhi could also face U.S. ire on trade issues – although its exports to the United States are comparatively small, it has a high trade deficit in its favor and Washington has often complained of protectionist barriers in India. In February, Trump called out India for imposing higher duties on Harley-Davidson motorcycles than the U.S. does on Indian motorbikes.

Amid growing fears that global trade faces uncertain times, analysts have called on countries like India to focus on increasing trade within the region.

India and China also said they will strengthen cooperation in the World Trade Organization and other multilateral and regional frameworks to maintain their common interests. VOA

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Cepheid to Establish Manufacturing Unit for TB Diagnostics in India

Rifampicin is a drug commonly used in treating TB bacteria in first line of treatment

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The GeneXpert Edge is developed specifically for near-patient testing, to help support a one visit test-and-treat approach.
The GeneXpert Edge is developed specifically for near-patient testing, to help support a one visit test-and-treat approach. (IANS)

Expanding its footprint in India, US-based molecular diagnostics company Cepheid Inc on Thursday announced its plans to establish a manufacturing unit in the country to improve Tuberculosis (TB) diagnostics.

Cepheid’s GeneXpert MTB/RIF test is a closed-cartridge-based system that is easy to operate by minimally trained staff and gives results in approximately two hours, speeding the conventional backlog that used to exist in traditional diagnostic methods.

The new manufacturing unit would produce MTB/RIF test cartridges, contribute to the government’s “Make in India” initiative and thus bringing the company’s global expertise in TB diagnostics to India, the company said in a statement.

As part of the plan, Cepheid also unveiled its latest portable, easy-to-use TB-testing system — the GeneXpert Edge — which is expected to be available in India later this year, the company said.

The GeneXpert Edge is developed specifically for near-patient testing, to help support a one visit test-and-treat approach.

“Cepheid recognises the need for technological advancement and is committed to contributing significantly to India’s goal of TB eradication,” said Peter Farrell, Executive Vice President, Worldwide Commercial Operations, Cepheid.

Cepheid's Xpert MTB/RIF test has the potential to detect Mycobacterium tuberculosis(MTB)
Cepheid’s Xpert MTB/RIF test has the potential to detect Mycobacterium tuberculosis(MTB).

“We are hopeful that GeneXpert Edge will help eliminate delays in TB diagnostics by providing definitive results within hours and facilitating fast and easy last-mile delivery even in the remote villages of India,” he added.

India has nearly one-fourth of the global TB patients and an estimated 4.8 lakh lives are lost every year due to delayed diagnosis and inadequate treatment and there are above 2.5 million new cases of TB every year. The country aims to eradicate TB by 2025.

Approved by the World Health Organisation (WHO) in 2010, more than 1,200 Cepheid’s GeneXpert Systems have been installed in the last two years at various Revised National Tuberculosis Control Programme (RNTCP) sites in the country and more than 2.5 million cartridges were supplied last year at various centres of Central TB Division (CTD).

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Cepheid’s Xpert MTB/RIF test has the potential to detect Mycobacterium tuberculosis(MTB) and rifampicin-resistance mutations, which are markers for MDR-TB strains in under two hours.

Rifampicin is a drug commonly used in treating TB bacteria in first line of treatment.

Xpert MTB/RIF tests also have excellent negative predictive value, which allows clinicians to manage TB-negative patients more effectively to prevent unnecessary and costly respiratory isolations. (IANS)