Archive · 28 Sep 2026
Sitharaman Says China Market Barriers Reroute Indian Exports
India buys more from China than it sells there directly.
Nirmala Sitharaman said the trade numbers may not show the whole picture.
She said some Indian products reach China through Vietnam or other countries.
This happens because China does not give direct access to some Indian goods.
She mentioned buffalo meat and generic medicines as examples.
India has raised these concerns with China since 2014.
She said Indian shoppers can buy foreign products if they want them.
In her view, Chinese authorities have more control over which products enter the country.
She compared the two systems by saying India is playing hockey while China is playing football.
Finance Minister Nirmala Sitharaman said some Indian goods reach China through Vietnam or other countries and are not recorded as direct exports to China.
She cited buffalo meat and generic pharmaceutical drugs as bulk products that China buys indirectly from India.
Sitharaman said India has raised market-access concerns with China since 2014, including proposals to supply generic medicines directly to Chinese healthcare centers.
She argued that Indian consumers can choose imported products, while Chinese authorities determine whether certain goods may enter the market.
Sitharaman also cited restrictions on leaving China, withdrawing investments, or taking technology out without government permission as evidence of unequal economic rules.
- Who
- Finance Minister Nirmala Sitharaman and the governments of India and China.
- What
- Sitharaman criticized China’s market-access and investment restrictions, saying they cause some Indian exports to be routed through third countries and omitted from direct trade figures.
- When
- During Sitharaman’s remarks at the Pondy Lit Fest 2026; the articles do not provide a specific date.
- Where
- In the context of trade between India and China, including goods routed through Vietnam and other countries.
- Why
- She said China’s restrictions prevent some Indian goods from entering directly and create unequal conditions for trade and investment.
- Main issue
- India’s widening trade deficit with China and whether it could affect the Viksit Bharat goal.
- Indirect exports
- Sitharaman said some Indian goods reach China through Vietnam or other countries.
- Products cited
- Buffalo meat and generic pharmaceutical drugs.
- Market-access concerns
- India has reportedly raised the issue with China since 2014.
- Generic-drug proposal
- India sought permission to supply generic medicines directly to local Chinese healthcare centers, but Sitharaman said the proposal made no progress.
- Different systems
- Sitharaman said Indian consumers influence demand, while Chinese authorities determine whether some products can enter the market.
- Investment restrictions
- She said people and companies in China may need government permission to leave or take money and technology out.
