China has exempted import tariffs on as many as 28 essential medicines, including cancer drugs from May 1. The move is expected to benefit India by exporting these pharmaceuticals to the neighbouring country. That apart, it will help reduce trade imbalance between China and India in the future.
Chinese Ambassador to India Luo Zhaohui has said that China would further improve business environment by halving time required to open a business. He also said that China’s door to the outside world will open wider and Indian businesses are welcome. He noted that India too has sought investments from China. Besides, he said that China has also agreed to set up an industry park in India to increase investments and bridge the trade deficit.
The development assumes importance as India repeatedly asked for greater market access for its goods and services, including IT, pharmaceuticals and agriculture, in the Chinese market to reduce the widening trade deficit. Besides, India's trade deficit with China stood at $36.73 billion during the first seven months of 2017-18 (April-October) compared to $51.11 billion in the financial year 2016-17.