2 days ago
India and China Begin Talks on Trade Imbalance
India and China have started talking again about trade problems.
India wants to sell more goods in China and reduce its trade deficit.
It also wants steady supplies of important materials used by factories.
China and India will discuss each side’s concerns in more meetings.
Their economic relationship had slowed after clashes in 2020 but has improved more recently.
India’s trade deficit with China was reported at $99.19 billion in the last fiscal year.
India also expects its trade agreement with New Zealand to begin in October.
It is negotiating a trade agreement with Canada and an interim agreement with the United States.
A trade pact with the European Union is expected to be signed at the end of 2026.
India and China have begun discussions on structural trade imbalances, supply-chain issues and market access.
Commerce ministers Piyush Goyal and Wang Wentao held an initial meeting during the BRICS Summit in New Delhi last week.
Further meetings are expected as both sides present their concerns and seek a mutually agreed formula.
India wants greater access for its products and predictable supplies of critical raw materials and industrial inputs.
India is also advancing trade negotiations with New Zealand, Canada, the United States and the European Union.
- Who
- Indian Commerce and Industry Minister Piyush Goyal, Chinese Commerce Minister Wang Wentao and Commerce Secretary Rajesh Agrawal are involved, along with officials from both countries.
- What
- India and China are discussing trade imbalances, supply-chain issues, market access and ways to build trust in bilateral commerce.
- Where
- The meeting was held on the sidelines of the BRICS Summit in New Delhi.
- When
- The initial ministerial meeting took place last week, with further discussions expected over the next few weeks.
- Why
- India wants to reduce its trade deficit with China, improve access for Indian products and secure predictable supplies of critical inputs.
Key facts
- Initial meeting
- Piyush Goyal and Wang Wentao met on the sidelines of the BRICS Summit in New Delhi last week.
- Main issues
- The discussions cover structural trade imbalances, supply-chain concerns, market access and trade-related trust.
- India-China deficit
- India recorded a trade deficit of $99.19 billion with China in the last fiscal year.
- Next steps
- Both sides are expected to hold additional meetings to present their positions and seek mutually acceptable solutions.
- New Zealand agreement
- The India-New Zealand free trade agreement is expected to take effect in the second half of October; October 19 was reported as a likely date.
- Canada negotiations
- India and Canada are holding their fourth Comprehensive Economic Partnership Agreement round from September 14 to 19, with a goal of concluding the agreement by the end of the year.
- United States and European Union
- India is working on an interim trade agreement with the United States, while its pact with the European Union is expected to be signed at the end of 2026.
Quotes
Rajesh Agrawal
India’s commerce secretary
“I think there will be meetings subsequently also to take these discussions forward. These discussions are happening after a long gap. So, slowly, each side will need to come up with their issues and also their position on issues of the other side, so that we can take this forward.”
telegraphindia.com
“They have also opened up to address concerns in a balanced way. We are also open to engaging with them to find solutions to our trade issues in a manner so that we can address supply chain issues and structural imbalances.”
financialexpress.com
Sources
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