Lok Sabha Question No. 1850 (UNSTARRED), answered on 2016-11-28
Subject: Trade Development Programme
Ministry: COMMERCE AND INDUSTRY
Asked by: SHASHI THAROOR

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1850 TO BE ANSWERED ON 28 th  NOVEMBER, 2016

## TRADE DEVELOPMENT PROGRAMME

## 1850. DR. SHASHI THAROOR:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the  details  of  the  'Five  Year  Development  Programme  for  Economic  and  Trade  Cooperation'  for  promoting  balanced  sustainable  development  of  economic  and  trade relations between India and China;
- (b) whether this bilateral strategy has been successful in controlling India's trade deficit with China;
- (c) if so, the details thereof; and
- (d) if not, the reasons therefor?

## ANSWER

okf.kT; ,oa m|ksx jkT; ea=h ¼Jherh fueZyk lhrkje.k½ ¼Lora= izHkkj½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a): The 'Five-Year Development Program for Economic and Trade Cooperation', signed between    India  and    China  during  the  visit  of  Chinese  President  Xi  Jinping  to  India  in September  2014,  provides  a  non-legally  binding  comprehensive  roadmap  for  promoting balanced and sustainable development of economic and trade relations between India and China  during  the  period  2014-19.  The  Program  includes  overall  appraisal  of  China-India relations, potentials and issues in bilateral trade and investment as well as cooperation in implementation  of  industrial  parks,  infrastructure  projects  etc.  The  detailed  document  is also available on the website at http://commerce.nic.in/DOC/InnerContent.aspx?Type=InternationalTrademenu&Id=32

(b)to (d): The Five Year Program is a joint statement that recognizes and states 'that trade deficit with China is a matter of high concern for India. Against this background and in the spirit of mutual benefit, India and China shall endeavour to strengthen cooperation and gradually achieve bilateral trade balance over the next 5 years. India and China shall further endeavour to increase bilateral trade in services particularly Information Technology (IT) & Information Technology Enabled Services (ITES) in the next 5 years.'

Thereafter,  a  Joint  Working  Group  (JWG)  on  Information  Technology  (IT)  has  been constituted  under  the  MoU  between  the  Ministry  of  Communications  and  Information Technology of the Republic of India and Ministry of Industry & Information Technology of the People's Republic of China on co-operation in the field of Information and Communication Technology. The first meeting of this JWG was held on 15 th -16 th December, 2014  where  two  countries  deliberated  to  further  promote  Indian  IT  and  ITES  exports  to China.Efforts to increase overall exports by diversifying  the trade basket with emphasis on manufactured  goods,  services,    resolution  of      market  access  issues  and    other  non-tariff barriers  is  an  ongoing  process.  This  is  done  through  bilateral  meetings  and  institutional dialogues. Indian exporters  are encouraged to participate in major trade fairs in China and other countries to show-case Indian products.

However,  the  trade  deficit  is  attributable  to  the  relative  demand  for  imports  in  India  and China for each other's goods. Increasing trade deficit with China can be attributed primarily to  the  fact  that  Chinese  exports  to  India  rely  strongly  on  manufactured  items  to  meet  the demand of fast expanding sectors like telecom and power, while India's exports to China are characterized  by  primary  and  intermediate  products.    The  major  imports  from  China  are products  such  as  telecom  instruments,  computer  hardware  and  peripherals,  fertilizers, electronic components/instruments, project goods, organic chemicals and drug intermediates, consumer electronics, electrical machinery and equipments, iron and steel etc. These imports feed the growing demand in India for such goods which China, due to variety of reasons, is able to export to India at competitive prices.

*****