Promoting two-way commerce and investment between India and China is necessary to bridge the widening trade deficit between the two neighbours, a Chinese official said today. “The issue of trade deficit between India and China needs to be addressed and therefore, promoting business, trade and investment is necessary between the two countries,” Liu Jinsong, Minister Counsellor, Embassy of China in India said. He was speaking at the China-India Business Meeting for Investment and Trade organised by Ficci.
The official’s statement assumes significance as India’s trade deficit with China has increased to $52.7 billion in 2015-16. India has time and again raised concerns over the figure and sought greater market access for Indian products. It has also suggested China to increase investments in India to bridge this gap.
Speaking at the function, Lu Xinhua, Vice Chairman of CPPCC Foreign Affairs Committee said: “We are seeing increased interest of Chinese companies to invest in India and we will take positive steps to promote them. India’s investment climate is getting better, laws and regulations are more sorted and the government is committed to increase FDI in India.”
Commenting on the communication front, he said: “When something (negative) happens in India, our investors and business corporates get worried about investment in India, so mutual understanding and communication is very important.”
Government policies have to be favourable to help bilateral relations grow to a new high, he said, adding that China will continue to be a problem solver for its corporates.
In terms of Purchasing Power Parity (PPP), Sidharth Birla, former Ficci President and Chairman, XPRO India said: “China and India are the first and third largest economies of the world, respectively. Considering their contribution to the global economy and trade, their bilateral relations would largely define and drive the global economic agendas.