1 hr ago
Sitharaman Says China Trade Barriers Distort India’s Export Picture
India buys more from China than it sells directly to China.
Nirmala Sitharaman said the numbers do not show the whole story.
She said some Indian products reach China through countries such as Vietnam.
This happens because China does not give direct market access to some Indian goods.
She mentioned buffalo meat and generic medicines as examples.
She also said India lets consumers decide which imported products succeed.
In her view, Chinese authorities have more control over what can enter the country.
She compared the two systems by saying India is playing hockey while China is playing football.
She also said China can restrict investors and experts from leaving or taking money and technology out without permission.
Finance Minister Nirmala Sitharaman said India’s reported trade deficit with China does not capture all Indian goods ultimately reaching China.
She said products such as buffalo meat and generic medicines may reach China through Vietnam or other countries because of limited direct market access.
Sitharaman said India has raised market-access concerns with China since 2014, including over direct supplies of generic drugs to Chinese healthcare centers.
She argued that India allows imported goods to compete based on consumer demand, while Chinese authorities determine whether some products can enter the market.
Sitharaman also cited restrictions on leaving China, withdrawing investments, or taking technology out without government permission as evidence of unequal rules.
- Who
- Finance Minister Nirmala Sitharaman and the governments of India and China.
- What
- Sitharaman criticized China’s market-access, trade, and investment restrictions and said they distort India’s recorded trade figures.
- Where
- In the context of trade between India and China, including goods routed through Vietnam and other countries.
- When
- During remarks responding to a question about India’s widening trade deficit with China; no specific date was provided.
- Why
- She said China’s restrictions prevent some Indian goods from entering directly and create what she considers unequal conditions for trade and investment.
Key facts
- Main concern
- India’s widening trade deficit with China and its implications for the goal of Viksit Bharat.
- Market-access issue
- Sitharaman said China does not provide direct access for some Indian bulk goods.
- Examples cited
- Buffalo meat and generic pharmaceutical drugs.
- Indirect routes
- Some Indian goods reportedly reach China through Vietnam or other countries.
- Negotiations
- Sitharaman said India has raised market-access concerns with China since 2014.
- Investment restrictions
- She said people and companies in China may need government permission to leave or take money and technology out.
- Sitharaman’s comparison
- She said India and China operate under different systems, describing the contrast as “playing hockey” versus “playing football.”
Quotes
Nirmala Sitharaman
India's finance minister
“Our export account would say that we are still not adequately exporting to China, but actually it is going to China. It never gets accounted like that because it goes to Vietnam, and from Vietnam it crosses the road and goes to China.”
businesstoday.in
“If you are a domain expert who came and you are helping that industry to run because you are the technical expert, you can't go out without the permission of the government.”
businesstoday.in
Sources
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