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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

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

Partial Shutdown of US Delays Space Missions, But NASA Not Grounded

Other active space missions includes NASA probes OSIRIS-REx and New Horizons spacecraft that continue to gather data in Earth orbit and the Moon, Mars, Jupiter and beyond, the report said

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People rally to call for an end to the partial government shutdown in Detroit, Thursday, Jan. 10, 2019. VOA

The partial shutdown of the US federal government has had a serious impact on the country’s space agency NASA and development work on most future space missions has been slowed or suspended.

However, NASA has not been totally grounded by the partial government shutdown that began on December 22, after last-minute negotiations in Congress failed to end a budget standoff.

Over 95 per cent of the space agency’s employees have been furloughed. As a result, various research projects, including the Hubble Space Telescope has been put on hold, the Space.com reported on Wednesday.

Hubble suffered a mechanical problem that only furloughed NASA employees could repair.

Many workers also gathered outside the Johnson Space Center in Houston to protest the shutdown and its deleterious effects on their lives and the nation’s space programmes.

The Telescope facilities that have so far remained open during the shutdown will soon run out of money and cease operations.

This includes the National Radio Astronomy Observatory (NRAO), a federally funded organization that operates the Atacama Large Millimeter Array (ALMA), the Green Bank Telescope and the Very Large Array (VLA), the report noted.

The partial shutdown become the longest on record after January 12, overtaking the previous record of the 21-day impasse in 1995-96 under then President Bill Clinton.

NASA, tissue
US shutdown delays space missions but NASA not grounded: Report,

President Donald Trump and the Congress have been at loggerheads over his demand to include in the budget $5.7 billion funding for building a border wall along the Mexico border. Democratic leaders have rejected his call.

NASA’s Stratospheric Observatory for Infrared Astronomy (SOFIA), also called the “flying telescope” has also ceased operations since the shutdown.

The telescope, which is mounted to the fuselage of a Boeing 747 aircraft, has not flown since the shutdown began, the report said.

However, despite the shutdown some “excepted” employees remained at work, assisting astronauts aboard the International Space Station (ISS) and other space missions, the report said.

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Last week, astronauts aboard the ISS conducted a range of scientific experiments and public-outreach work. They engaged in an orbital Q&A with school kids and answered a variety of questions, from the nature of the research performed aboard the ISS to the type of training astronauts receive to whether your ears pop in space.

On January 13, a SpaceX Dragon cargo capsule departed the orbiting lab for Earth, eventually splashing down in the Pacific Ocean. The robotic Dragon brought down important scientific research and hardware for examination here on terra firma.

Other active space missions includes NASA probes OSIRIS-REx and New Horizons spacecraft that continue to gather data in Earth orbit and the Moon, Mars, Jupiter and beyond, the report said.  (IANS)