"Such imbalanced trade is not in the long-term interest of either country. Both governments are committed to taking imaginative measures and rigorous effort in tackling this issue," Minister of State for External Affairs Gen (Retd) V K Singh said at the India-China Economic and Tourism Cooperation Forum.
"The deficit requires to be pro-actively addressed," he said at the forum, being held on the sidelines of China South Asia Fair in southwest China's Kunming city in Yunnan province.
However, he noted that the bilateral trade has not grown in a balanced way.
"While bilateral trade has grown, it is not balanced. Both sides have recognised the challenge posed by the growing trade imbalance and its negative effect on sustainability and diversification of bilateral trade," he said.
Singh said "last year, trade deficit climbed even more to cross USD 47 billion" of the total USD 70.59 billion trade, which officials say accounted for one-third of India's total trade deficit.
India is the country of honour at the annual five-day South Asia Expo this year. Many Indian businessmen have opened their stalls at a colourful pavilion built by the Indian Embassy here.
Stating that "bilateral investment can emerge as driver of our economic Sino-Indian economic partnership", Singh said he welcomes Chinese companies to partner in India's economic growth and development.
Singh said the 'Make in India' campaign provides Chinese firms the "golden opportunity" to build awareness of China's contribution to India's development.
"'Invested by China, Made in India' should be encouraged. The industrial parks in Gujarat and Maharashtra are important bilateral endeavours," he said pointing out two parks devoted for Chinese investors.