“The challenge before us is to diversify our export basket to China,” Singh said.

“I would urge Indian business to vigorously pursue opportunities for expanding non-traditional items of export. Such efforts, when matched by greater market access for Indian goods in China, will help to bridge the rising trade deficit between us,” Dr Singh said in his address at the India-China Economic, Trade and Investment Summit.

The Prime Minister said there were enormous opportunities for both India and China to expand trade in services, particularly in construction and engineering, education, entertainment, financial services, IT and IT-enabled services, transport, tourism and health.

Echoing Singh’s views, Chinese Vice Premier Hui Liangyu said the two countries have pledged to strengthen trade ties in these areas.

Coordination sought

“We will work together with the Chinese government to remove administrative barriers and simplify regulatory regimes in order to move forward in these areas,” Singh added.

Singh assured that both the governments will work together to put in place an “enabling environment” for greater trade, investment and economic interaction. The need to rein in trade deficit was also stressed by Commerce minister Kamal Nath during his meeting with his Chinese counterpart Chen Deming.

More trade items

Mr Nath said India wants to diversify the basket of exports to China by including fruits and vegetables and sought access to its aviation and entertainment sectors and removal of technical and non-tariff barriers specifically in pharmaceutical sector.

“Mr Chen clearly recognised that such a large trade imbalance is not desirable and sustainable. He offered to send buying missions to India frequently to promote a more diversified basket of exports from India to China,” Nath added

At the business meet, Singh said that the environment to bolster bilateral economic ties has to include creating a level-playing field, by addressing such issues as non-tariff barriers, intellectual property rights (IPR) protection and market-related exchange rates.

The Indian industry leaders including CII chief Sunil Mittal and FICCI President F Khorakiwala had sought the Prime Minister’s intervention with Beijing for early removal of trade and non-trade barriers imposed by China.
“Our two economies are becoming engines of economic growth and must use our natural and human resources, technology and capital for the common benefit of the region,” Singh said.