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External Affairs Minister Salman Khurshid is expected to strongly take up the issue of gaining greater access to the Chinese market during his visit there on Thursday.
Soaring trade deficit with China has remained a concern for the government for a long time. The ministry of commerce and industry had even worked out a strategy paper in 2009-10 outlining ways to increase India’s exports to China. But there had been no movement on that since then.
“There will be a review of the bilateral relations. Issues concerning trade and commerce are going to feature prominently during the minister’s meeting with the new (Chinese) team. We will seek greater market access there,” a person aware of the development told Business Standard on condition of anonymity.
“Trade deficit is a huge issue and it remains an area of concern and we are looking at making inroads into their pharmaceuticals and information technology sectors. We are also going to look at other areas where our companies can work effectively.”
The trade deficit with China has increased to almost $40 billion (Rs 2.16 lakh crore today) in 2011-12 from $23.14 billion in 2008-09 and $9.16 billion in 2006-07, according to the latest data by the ministry of commerce and industry. The commerce ministry has not been able take any effective measure so far to address the issue.
Both sides are going to discuss the proposed Border Defence Cooperation Agreement, which India had been reluctant to take up. The proposal envisages “better contacts on the LAC (Line of Actual Control) through higher means of communication”.
The proposal, apparently, also has certain clauses concerning ceasefire violations by both sides. It states that in the event there is a “misunderstanding” on LAC, neither troops will fire at each other. But India has not given its consent to the pact yet and wants to study the agreement before committing to anything.
Sources also added the recent face-off with China on the LAC remains a “mystery” with the Indian government and it had not been able to ascertain why the Chinese side suddenly initiated incursions near the Depsang Plain from April 15.
“The patrolling done by the (Indian) Army near the Depsang is regular affairs and we will continue doing that,” a source said, adding, however, the tin shades made by the army there for the patrolling unit had been “removed.”
