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Boundary dispute may havemarginal effect on Sino-India trade

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Press Trust of India Beijing
Last Updated : Jun 24 2016 | 7:03 PM IST
The differences between India and China on boundary issue and other matters may have "some marginal effect" on bilateral trade but businesses between the two sides have been expanding, Finance Minister Arun Jaitley said today.
"Economic relationship normally moves independently. Because trade will depend on terms of trade. These factors could have some marginal effect," said Jaitley, who is here on a five-day visit to pitch for more Chinese investments in India's infrastructure sector.
Asked about the impact of Sino-India differences, specially in the backdrop of the boundary dispute, he said, "If at all it is marginal. You are not at a stage countries have stopped dealing with each other businesses. Issues are there. Issues will be resolved. The boundary issue has existed for decades. Our business expanded notwithstanding."
About ballooning trade deficit which amounted to about USD 48 billion last year in over USD 70 billion bilateral trade, Jaitley said, "it can only be bridged by improving upon your trade".
"Otherwise those who are in a position to become global suppliers also has to work on their own costing," he said.
About India pressing China to provide market access to IT and Pharmaceuticals, he said, "the market issues between the two countries are real. These issues are discussed time to time."

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On the the flow of Chinese investments into India, Jaitley said investments in rural and public sectors have to government investments. But two areas private investment is always welcome are, infrastructure and manufacturing.
"These two areas we prefer lot of private investment which will come from where ever it is available," he said.
Some corporations have large investable surpluses. Therefore, investment do come into manufacture and infrastructure, he said.
"As a rule they are welcomed unless there is some other issue. In terms of investments it could always be more," he said.
On the feasibility study for Delhi-Chennai bullet train corridor, he said study is there but it has not come to me yet.
Jaitley, who addressed an Investors Forum meet here today attended by officials of the top Chinese firms will take part in the Board of Governors meeting of the China sponsored Asian Infrastructure Investment Bank (AIIB) tomorrow. India is the second largest shareholder in the bank after China.

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First Published: Jun 24 2016 | 7:03 PM IST

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