India Flags Trade Barriers As Deficit With China Crosses 100 Billion Dollars

China stated on Friday that it is ready to work with India to address economic and trade concerns after Union Finance Minister Nirmala Sitharaman pointed out market access restrictions.

The Trade Deficit

India's trade deficit with China crossed 100 billion dollars in the first nine months of the year. China Customs data released on Wednesday showed the deficit widened to 105.93 billion dollars, which is a 20.7% increase compared to last year. Total bilateral trade grew to 144.45 billion dollars, marking a 25.4% rise between January and September. Chinese exports to India touched 125.19 billion dollars, up by 23.3%. Indian exports to China reached 19.26 billion dollars, showing a 40.7% increase from the same period last year.

Market Access Hurdles

Ms. Sitharaman spoke at the Atlantic Council on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand. She stated that the growing trade imbalance and persistent restrictions on market access remain major concerns despite years of engagement. India has consistently sought access for generic medicines, bovine meat, vegetables, and perishable goods. She noted that non-tariff barriers are the biggest hurdle, pointing out that China used phytosanitary measures and other restrictions. She added that India prefers negotiations over imposing punitive tariffs to fix trade imbalances.

Beijing's Response

Chinese Foreign Ministry spokesperson Mao Ning told a media briefing that China never aims for a trade surplus. She said Beijing stands ready to work with India to address concerns in a balanced way and promote steady bilateral relations.

Context

Trade deficits occur when a country imports more goods and services than it exports. Large imbalances between major trading partners often lead to discussions over market barriers and trade policies.