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PM to take up large trade gap with China with Xi at BRICS summit

Updated: Mar 25, 2013 04:41:25pm
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New Delhi, Mar 25 (KNN) Prime Minister Manmohan Singh who left for Durban (South Africa) today for the BRICS summit will meet China’s new President Xi Jinping and is likely to take up the issue of trade imbalance between the two countries.

When the two leaders meet on the sidelines of the BRICS (Brazil, Russia, India, China and South Africa), India’s Prime Minister is expected to impress upon the Chinese leader for opening of  more avenues for export of Indian goods to the neighbouring nations, officials said.  Indian micro, small and medium enterprises contribute 40 per cent of the country’s total merchandise shipments.

“I look forward to meeting with Chinese President Xi Jinping.  It will be an opportunity for me not only to greet the new Chinese President personally, but also to discuss how we can maintain the positive trajectory of our relationship and further strengthen this very important bilateral relationship,” the Prime Minister said in his departure statement here.

He said given India’s long-standing and close friendship with Africa and growing economic partnership with the continent, “I will reaffirm our strong and enduring commitment as a steadfast partner for inclusive development in Africa.

Both in China and Africa, India’s small and medium enterprises (SMEs) have a good amount of stake. Indian SMEs find it hard to gain a foothold in the Chinese market and complain of several non-trade barriers while the Chinese exporters have been flooding the Indian market.

 India's trade deficit with China had nearly jumped to USD 40 billion in the fiscal 2011-12 on a total bilateral trade of USD 75 billion.  While India's exports were only USD 17.90 billion, imports were way ahead at USD 57.55 billion.

On the other hand, Africa is important in the wake of slowdown in the European and other western markets.  Africa can provide the Indian exporters an alternative market. (KNN) 

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