The residents of districts along the Indo-China border will have to obtain permits to trade with Chinese, a move that will restrict flow of cheap Chinese goods into the country.
In June 2006, to promote bilateral trade, the government allowed people living on both sides of the Indo-China border to trade locally produced commodities.
The Directorate General of Foreign Trade, however today amended the early provision and said, "Import/export of the commodities by residents of border districts who are issued trade passes, as per the prevailing customary practise will be allowed free."
Indians are allowed to export 29 items, including farm implements, blankets, textiles, tea, coffee, rice, tobacco, spices, wheat, and kerosene oil among others, while they can import 15 products like wool, goar skins, horses, salt, butter and silk.
Commerce and industry minister Anand Sharma during his recent visit to Beijing drew attention to the large and growing trade deficit that India is experiencing in its bilateral trade with China. He requested the Chinese side to take corrective steps to reduce this imbalance.
India's exports to China were $9.35 billion 2008-09 while imports were valued at $32.49 billion.
