India has constantly raised the issue of market access and removal of bottleneck for its domestic agricultural products with China. India-China bilateral trade stood at $75.5 billion, but the inflating trade deficit in Beijing’s favour, which amount to about $40 billion in 2011-12, has lifted up concerns among Indian authorities.
Although China has allowed imports of 9 fruits including mangoes and grapes and 8 vegetables, it has yet to grant imports for remaining 14 fruits and vegetables. China approved the import of Indian Basmati rice in April 2012. Further the issue of market access to Indian agricultural products has been taken up at various inter-governmental interactions at different levels.
Minister of State for Commerce and Industry D Purandeswari said the government is making all efforts for enhancing merchandise exports from India to bridge the trade deficit with China. During Apr-Sept period of the fiscal, India’s imports from China stood at $28 billion, while exports aggregated at $6.43 billion. The percentage share of exports to traditional market (the US and Europe) during 2009-10, 2010-11 and 2011-12 has been 32.4%, 29.9% and 30.2%, respectively.
Purandeswari added that the global economic crisis, the sovereign debt crisis in Europe and the economic slowdown in developed economies have adversely impacted demand for exports in India’s traditional markets.
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