India and China, on Monday, agreed to work on a five-year plan and set up a joint working group that can help enhance commerce between the two countries and also address their growing trade imbalance.
Union Commerce & Industry Minister Anand Sharma emphasised the need to address the issue of growing trade imbalance with China at a meeting of India-China Joint Group on Economic Relations, Trade, Science and Technology.
His Chinese counterpart Chen Deming was of the view that Indian companies should be proactive in exporting to markets in China. Deming said that trade imbalances can be reduced through better investment relations between two countries. He also proposed a five-year plan and a joint working group for giving momentum to commerce between India and China.
Sharma agreed to the proposal. As per the plans, the joint working group will be established soon and it will give its recommendations and assessments in 90 days.
India-China trade, at present, is heavily tilted in China’s favour with India’s trade deficit with China reaching nearly $40 billion in fiscal year 2011-12. In the bilateral trade of $75.45 billion last year, India’s exports were at $17.90 billion and imports stood at $57.55 billion. “We have also agreed to work on a five-year plan on economic co-operation,” Sharma said after the joint economic group (JEG) meeting. This was the ninth session of the JEG, which last met in Beijing in January 2010.
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