Amid concerns over the increasing India’s trade deficit with China, India sought more Chinese investments to bridge the ballooning $35 billion trade deficit. Indian Ambassador to China Ashok K Kantha, during the meeting with Chinese officials, has highlighted the potential for expanding and diversifying trade and economic cooperation between these two countries. At present, Chinese investment in India is less than $1 billion.
Kantha asserted that Shanghai-based companies have undertaken a number of projects in India and other Chinese enterprises should also increase their investments in India. While, Shanghai Mayor Yang Xiong has said that relations between Shanghai and India have made steady progress and the Shanghai municipal government remains committed to further strengthen its relations with India.
China-India bilateral trade declined to $66.5 billion last year as Indian trade continued to fall due to various reasons including reduced iron ore exports and high rupee depreciation. Both the countries have set $100 billion target by 2015, which is expected to benefit China more. However, India had already asked the Chinese government to provide more access to the market so that the target of $100 billion can be achieved in a more balanced manner. More access of Chinese markets to domestic IT-enabled services, cotton textiles, home furnishings and pharmaceuticals can help India to reduce the imbalance in trade.
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