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India and China sign three MoUs to help bridge trade deficit

Updated: May 20, 2013 06:26:58pm
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New Delhi, May 20, (KNN) India and China signed three Memorandums of Understanding (MoUs) on buffalo meat, fisheries and pharmaceuticals here today which will help in reducing trade deficit between the two countries.

“The signing of the MoUs between India and China is a good beginning to address the issues India is raising with China from time to time.  All the sectors are of immense trade importance to India and India has clear price and quality competitiveness in these sectors to compete in the world market,” said Commerce and Industry Minister, Anand Sharma.

The MoUs were signed during Chinese Premiere, Li Keqiang’s visit to India.

Presently, export of buffalo meat is not allowed from India to China which has been a long pending issue between the two countries. With the signing of a MOU and resumption of trade, India hopes for a big merchandise trade that will not only be helpful in reducing trade imbalance of India but also in China’s food security by providing quality and hygiene meat products.

India and China have huge potential for marine products. Understanding the importance of this sector the two sides signed a MoU on cooperation for import and export of fishery products. The MoU aims to institutionalise cooperation in promoting trade of fishery products and healthy development of trade between India and China. India is hoping to export more to China through this cooperation.

India which imports huge pharmaceuticals consignment from China has very low exports to that country.  The third MoU signed on pharmaceuticals will help India expand its trade with China facilitating better access to the Chinese market.

The average imports of medicinal and pharmaceutical products from China during the last five years amounted to USD 4332.37 million while exports from India were only USD 692.44 million.

Apart from this, an agreement was signed on trade and safety of feed and feed ingredients which is expected to boost India’s merchandise trade of feed after the resumption of trade as China had suspended their import since January 1, 2012.

The bilateral trade between India and China had gone up from USD 2.09 billion in 2001-02 to a high of USD 75.59 billion in 2011-12; which fell down to USD 67.83 billion during the year 2012-13.  (KNN)

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