India’s trade deficit with China finally reduced!

By Hu Weijia Source:Global Times Published: 2019/4/16 16:03:48

India cut its trade deficit with China by the most in more than a decade, Bloomberg reported Tuesday, mainly because of a sizeable increase in exports by India who won market access last year for sugar, rice, pharma, and a range of products exported to China.

India deserves applause for its efforts to reduce the trade deficit. Although China's surplus with India tumbled, Beijing is unlikely to slow down the pace of granting more market access to Indian farmers and companies. India's export potentials in fields such as agriculture, film, tourism and labor-intensive industries are still far from being fully realized. China adopts an open attitude toward the potential of market access negotiations with India's upcoming new government. 

Some Indian people question the authenticity of India's import figures reported by Bloomberg, saying China may use Hong Kong to camouflage the real size of the mainland's sales to India. However, there isn't much doubt about the sharp increase in India's exports to China. The export figures suggested free trade is good for India. No matter who wins the election, India's upcoming new government should give priority to push forward free trade with countries, especially China, to further open its market to Chinese companies by the same magnitude, and establish a Regional Comprehensive Economic Partnership (RCEP) with Beijing.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn

Posted in: EYE ON ECONOMY

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