Lok Sabha Question No. 656 (UNSTARRED), answered on 2019-06-26
Subject: Trade Deficit between India and China
Ministry: COMMERCE AND INDUSTRY
Asked by: Shrirang Appa Barne, Shrikant Eknath Shinde

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

## LOK SABHA

## UNSTARRED QUESTION NO. 656 TO BE ANSWERED ON  26 th  JUNE, 2019

## TRADE DEFICIT BETWEEN INDIA AND CHINA

## 656. SHRI SRIRANGA APPA BARNE:

## DR. SHRIKANT EKNATH SHINDE:

Will  the  Minister  of COMMERCE & INDUSTRY ( वािण᭔य एवं उ᳒ोग मंᮢी ) be pleased to state:

- (a) whether China is adopting a host of discriminatory and restrictive practices against Indian companies to bar them from participating in their procurement process;
- (b) if so, the response of the Government thereon and the action taken by the Government to safeguard the interest of Indian Companies;
- (c) whether  there  is  a  need  to  pursue  for  greater  market  access  for  agriculture  and  dairy products, and pharmaceuticals;
- (d) if so, the response of the Government thereon;
- (e) whether the Government has taken any measures to boost exports and reduce imports to check the massive trade deficit with China and if so, the details thereof; and
- (f) whether there  is  a  need  to  give  export  incentives  to  bridge  the  gap  between  import  and export and if so, the details thereof?

## ANWSER

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## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

- (a) & (b): A section of the industry has opined that some of the conditions like   requirements of  local  experience,  are  limiting  their  participation  in  the  Chinese  procurement  process. Government of India has been engaging with the relevant Chinese government entities to ensure  that  Indian  companies  get  market  access  for  its  products.  Such  issues  are  also discussed  in  the  bilateral  meetings  from  time  to  time  to  find  solutions  to  any  such restrictions in market access.

(c)Yes sir.

(d) to (f): Government of India has been taking continuous and sustained steps to bridge the trade deficit by lowering trade barriers for Indian exports to China. During the 11th session of India-China Joint Group on Economic Relations(JEG) held in New Delhi on 26 March 2018, the  two  countries  agreed  to  increase  bilateral  trade    in  a  more  balanced  and  sustainable manner.  In  this  regard  various  meetings  have  been  held  at  the  official  level  with  Chinese counterparts  as  a  part  of  our  ongoing  efforts,  to  obtain  market  access  for  various  Indian agricultural, dairy, and pharmaceutical products etc. in light of the potential of these products in the Chinese market. Various protocols have been signed to facilitate export of Indian rice, rapeseed meal, tobacco and fishmeal / fish oil, chilli meal, from India to China. A workshop was  jointly  conducted  by  National  Medical  Products  Administration  China,  and  Central Drugs  Standard  Control  Organisation  India,  with  the  objective  to  train  Indian  Pharma exporters  on  the  updated  regulatory  practices  of  China,  on  21st  June  2019,  at  Shanghai, China.

The Government of India has also taken various measures to extend support to exporters by facilitating Buyers Seller meets between potential Chinese importers and Indian exporters to increase exports of sugar, oil meals, Indian rice, grapes etc. In addition, Indian exporters are encouraged to participate in major trade fairs in China, to showcase Indian products.

Government  has  been  implementing  various  schemes/programmes  to  help  the  domestic industries  compete  effectively  with  imports.  To  promote  the  domestic  manufacturing, schemes like 'Make in India, 'Digital India', Software Technology Parks(STPs), Electronics Hardware Technology Park (EHTP) Scheme/ Export Oriented Unit (EOU) Scheme, Special Economic Zone Scheme (SEZ) etc., provide support for promoting domestic manufacturing in the country.

T he Foreign Trade Policy 2015-20 has mechanisms such as Merchandise Exports from India Scheme, Advance Authorisation Scheme, Export Promotion Capital Goods Scheme, Interest Equalization  Scheme  to  provide  an  enabling  framework  for  the  businesses  to  make  their exports  competitive.    Active  interventions,  in  terms  of  policy  and  procedural  changes  are regularly undertaken by the Government so that the businesses can cope up with the dynamic international trade scenario.

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