Source: Economic Times
India’s trade deficit with China touched $8 billion during April-May this fiscal, Parliament was informed today.
The trade deficit has increased to $48.47 billion in 2014-15 from $36.2 billion in 2013-14.
“Increasing trade deficit with China can primarily be attributed to the fact that Chinese exports to India rely strongly on manufactured items meeting the demand of fast expanding sectors like telecom and power while India’s exports to China are characterised by primary products, raw material and intermediate.” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to Lok Sabha.
She said that to boost exports and to maintain balance of trade with India’s trade partners including China, government has taken several measures including market study initiatives to identify specific products having export potential.
India is also actively taking up issues related to trade and non-trade measures with its trading partners.
Replying to a separate question, the minister said India has entered into 11 free trade agreements and five preferential trade agreements with other countries.
“India is negotiating FTAs and PTAs with some countries, including Israel and the EU.”