By NewsGram Staff Writer
Prime Minister Narendra Modi during his visit to Beijing next month, will take up the issue regarding India’s bulging trade deficit with the Chinese leaders.
Modi is expected to propose measures to narrow the gap that had disproportionately skewed towards the neighbor.
According to the estimations of the Commerce Department, the trade deficit between India and China has widened up to $40 billion in 2014-15 and is expected to reach up to $60 billion in the next five years, if the issue went unnoticed.
The imports from China had increased up to 18.18 per cent to $55.77 billion, while exports had declined up to 18.88 per cent to $11.01 billion, reported the Commerce Department.
“The Prime Minister will make a strong pitch to reduce the deficit in case there is a future for India-China trade relations, this issue needs to be sorted out’,” said the Commerce secretary Rajeev Kher.
“The approach requires a three-pronged strategy; seeking effective market access from China in specific areas of India’s strength, channeling Chinese investment into Indian manufacturing and jointly investing in third world countries,” added the Commerce secretary during the three-day session of Global Exhibition in Services.
Kher also said that, “China has expressed interest in setting up industrial parks in the country. It has to be ensured that these fructify on time, because the more investments get delayed, the wider the trade deficit will get.”