'Chinese investments, higher exports to reduce trade deficit'

Increase in Chinese investments in India and boosting exports to that country could help bridge trade deficit with the neighbouring nation.
"Trade deficit can be reduced to sustainable levels through more exports from India to China as well as China's investing in building manufacturing capacities in India," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
India is taking steps to reduce trade deficit with China, which stands at USD 36.21 billion in 2013-14, she said.
To a question as to whether India continuously has trade deficit with China, she said, "yes".
"Given the strength of China's manufacturing sector, Chinese export to India relies strongly on manufactured items addressing the demand of fast expanding sectors like telecom and power in India along with other low prices products," she said.

India's comparatively less developed manufacturing sector and its greater reliance on primary products in the trade basket is proving to be an impediment, she added.

The limited market access afforded to Indian products in China is also a contributing factor to the growing trade deficit, Sitharaman said.
She added: "With a view to reducing trade deficit with China, efforts are being made to diversify the trade basket with emphasis on manufactured goods.
"The government is also pursuing market access to tackle non-tariff barriers in the Chinese market at different fora."
She also said that the next meeting of the India-China Joint Group on Economic Relations, Trade Science and Technology, where trade related issues are discussed, is scheduled in China this year.