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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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india-china trade
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

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.

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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.

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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

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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

Next Story

India to Launch Electronic Intelligence Satellite Soon

In January, the space agency launched a defence imaging satellite Microsat R for the DRDO

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TESS, rover, NASA, mercuryKeplar, NASA
TESS, the Transiting Exoplanet Survey Satellite, is shown in this conceptual illustration obtained by Reuters on March 28, 2018. NASA sent TESS into orbit from the Kennedy Space Center in Florida aboard a SpaceX Falcon 9 rocket. VOA

India on April 1 will launch an electronic intelligence satellite Emisat for the Defence Research Development Organisation (DRDO) along with 28 third party satellites and also demonstrate its new technologies like three different orbits with a new variant of PSLV rocket, ISRO said on Saturday.

According to Indian Space Research Organisation (ISRO), a new variant of its Polar Satellite Launch Vehicle (PSLV) rocket will first put the 436 kg Emisat into a 749 km orbit.

After that, the rocket will be brought down to put into orbit the 28 satellites at an altitude of 504 km.

This will be followed by bringing the rocket down further to 485 km when the fourth stage/engine will turn into a payload platform carrying three experimental payloads: (a) Automatic Identification System (AIS) from ISRO for Maritime satellite applications capturing messages transmitted from ships (b) Automatic Packet Repeating System (APRS) from AMSAT (Radio Amateur Satellite Corporation), India – to assist amateur radio operators in tracking and monitoring position data and (c) Advanced Retarding Potential Analyser for Ionospheric Studies (ARIS) from Indian Institute of Space Science and Technology (IIST) – for the structural and compositional studies of ionosphere, the space agency said.

The whole flight sequence will take about 180 minutes from the rocket’s lift off slated at 9.30 a.m. on April 1.

The 28 international customer satellites (24 from US, 2 from Lithuania and one each from Spain and Switzerland)- will weigh about 220 kg.

OSIRIS-REx, NASA, Asteroid bennu
Satellite To Conduct Biological Experiments In Space, Plans Space Kidz India. VOA

“It is a special mission for us. We will be using a PSLV rocket with four strap-on motors. Further, for the first time we will be trying to orbit the rocket at three different altitudes,” ISRO Chairman K. Sivan had earlier told IANS.

The PSLV is a four-stage engine expendable rocket with alternating solid and liquid fuel.

In its normal configuration, the rocket will have six strap-on motors hugging the rocket’s first stage.

On January 24, the ISRO flew a PSLV with two strap-on motors while in March, it had four strap-on motors.

The Indian space agency also has two more PSLV variants, viz Core Alone (without any strap-on motors) and the larger PSLV-XL.

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The ISRO selects the kind of rocket to be used based on the weight of satellites it carries.

The ISRO will also be launching two more defence satellites sometime in July or August with its new rocket Small Satellite Launch Vehicle (SSLV).

In January, the space agency launched a defence imaging satellite Microsat R for the DRDO. (IANS)