Facing an unsustainable imbalance in its trade with China, Prime Minister Manmohan Singh has welcomed enhanced Chinese investment and the proposal to set up an industrial park in India as a way to overcome the growing trade deficit. The trade deficit between the two countries has touched almost $ 20 billion amid declining Indian exports of raw materials like iron ore. Bilateral trade with China touched $66.5 billion last year, of which China’s exports to India was about $ 47.7 billion. The prime minister replying to the progress of the discussion of Regional Trading Arrangement (RTA) between China and India, said the large trade deficit is causing concern in India. Both countries asked their Commerce Ministers to explore the idea of RTA, for which some studies were conducted a few years ago, he said.
In a written interview with Chinese media based in India, the prime minister said, “We are happy that more Chinese firms are looking to India as an investment destination. During his visit to India in May 2013, Premier Li Keqiang suggested that we look at the option of establishing a Chinese Industrial Park in India where companies and firms from China could cluster together.” He further stated that “We have also shown them a few possible sites for a Chinese Industrial Park. We will work with the Chinese side in implementing the idea.”
