India-China trade has increased but deficit has widened, says Foreign Secy Harsh Shringla

Foreign Secretary Harsh Vardhan Shringla on Thursday expressed concern over the "widening" trade deficit with China. While speaking at a seminar on Leveraging China's Economy, Shringla highlighted the increasing trade imbalance between the two neighbors that has continuously swelled despite overall growth in the trade volumes. He termed the India-China trade deficit as the "largest trade deficit" that India has with any country. 

"Our trade deficit concerns are two-fold- the first is the actual size of the deficit. For the nine-month period, the trade deficit was USD 47 billion. This is the largest trade deficit we have with any country. Second, is the fact that the imbalance has continuously been widening".

"We have highlighted that the widening deficit and the increase in trade barriers are issues of concern. These have been regularly flagged at the highest level, most recently at the 2nd Informal Summit between our Prime Minister (Narendra Modi) and the Chinese President (Xi Jinping) in Chennai in 2019," he added.

FS Shringla on India-China trade

Recalling the 1988 bilateral relations re-establishment and advancement of ties, the Foreign Secretary noted that India is firm in its commitment with other nations, including China, in terms of placing trade relationships on a more sustainable footing and raising these issues with the Chinese counterpart on all appropriate occasions. Highlighting the prevailing tensions on the India-China border, FS Shringla stated, "The LAC in Eastern Ladakh has seriously disturbed the peace and tranquility in border areas. This has obviously had an impact on the broader relationship too".

He also emphasized the importance of internal development. He said, "Even as we continue to pursue these issues with China, we also need to do work at home. This is why Atmanirbhar Bharat-an India with greater capabilities, not just helping itself but being a force for good in the international arena, has become important." While addressing the event, Shringla spoke on multiple issues, including the COVID pandemic, international relations, and the Indian economy.

Speaking about the Digital India initiative of the Narendra Modi-led government, the Foreign Secretary said the last one year of real-time online transactions was 25.5 billion, which is the highest for any country, and by the end of 2025, digital transactions will account for around 71.7% of the entire payment of India, he added. Shringla also underlined the remarks of External Affairs Minister S Jaishankar that the relationship and work between India and China will determine the Asian century. He said to materialize this, peace and tranquility in the border areas is important and bonding can only grow stronger by mutual respect, mutual sensitivity, and mutual interest between India and China. 

With Inputs from ANI

Image: ANI