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India and China today signed three agreements on areas including buffalo meat and pharmaceuticals, a move which will help in bridging the widening trade deficit.
"These Memorandum of Understandings (MoUs) will address the growing trade deficit between the two countries," a Commerce and Industry ministry statement said.
Both the countries signed three MoUs on buffalo meat, fisheries and pharmaceuticals; and on feed and feed ingredients.
The trade deficit has increased from $1.08 billion in 2001-02 to $40.78 billion in 2012-13 in favour of China.
The MoUs are part of agreements entered into by the two countries during the current visit of Chinese Premier Li Keqiang to India.
"The signing of the MoUs 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," it said quoting Commerce and Industry Minister Anand Sharma.
A MoU for the export of buffalo meat from India to China was signed between Chinese General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and India�s Agricultural and Processed Food Products Export Development Authority (APEDA).
"The export of buffalo meat is not allowed from India to China and this has been a long pending issue between two countries.
"With the resumption of trade, India hopes 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," it said.
The Marine Products Export Development Authority (MPEDA) and AQSIQ signed a MoU on cooperation in import and export trade of fishery products.
The MOU aims to institutionalise cooperation in promoting trade of fishery products and healthy development of trade between the countries.
India is expecting more exports from India to China through this cooperation, the statement said.
Further, a MoU was also inked between Pharmaceuticals Export Promotion Council of India and The China Chamber of Commerce for Import and Export of Medicines and Health Products.
"India has been finding it difficult to expand its trade with China in the pharmaceutical sector. The signing of the MoU is expected to facilitate access to the China market in pharmaceuticals," it said.
The average imports of medicinal and pharmaceutical products from China during last five years were $4.33 billion vis-�-vis exports from India of $692.44 million.
An agreement was also signed between Export Inspection Council of India (EIC) and AQSIQ on trade and safety of feed and feed ingredients.
"India hopes a big merchandise trade for feed and feed ingredients after the resumption of trade as China has suspended import of feed and feed ingredients since January 1, 2012," it said.
Further, the statement said a work programme was constituted on the Working Groups constituted during the 9th Joint Economic Group (JEG).
"The programme proposes concrete deliverables to constitute and define detailed mandate of the Working Groups...," it added.
The bilateral trade between India and China had gone up from $2.09 billion in 2001-02 to $67.83 billion during the 2012-13.
