While releasing a study by the Department of Commerce
on India-China Trade, Union Minister of Commerce & Industry and Civil
Aviation, Suresh Prabhu said that protectionist policies have gained ground
globally, particularly with the trade war between two of the largest economies
of the world.
The report tries to examine the rising trade deficit
with China to find possible reasons for it. Pointing out the unique nature of
the bilateral relationship between India and China, the Commerce Minister said
China has become India’s biggest trading partner in a span of fifteen years
from being a small trading partner of India in 2001.
While releasing the study, he referred to the rise of
global protectionist policies and he said, “The global use of protectionist
measures in 2018 was unprecedented with the trade wars looming between two of
the largest economies of the world.”
Underscoring the idea behind this exercise, he said it
is to identify whether tariff concessions by China to other countries impede
raising the share of India’s exports in the Chinese market. These lines can be
taken up by India for negotiations with China under agreements like Asia
Pacific Free Trade Agreement (APTA) in which both India and China are involved
during the review exercise.
The Minister spoke about the eight
sections of the study and he also said, “The study also underlines the
opportunity available for India in increasing its services exports to China.
Indices like Revealed Comparative Advantage (RCA) and Trade Complementarity
Index (TCI) have been used to analyse the extent of India and China’s
competiveness in this arena and the potential for the future.
There is a separate section on the opportunities arising for India out of US -
China trade standoff with a detailed analysis of specific tariff lines on which
tariffs have been levied by China on the US amidst the ongoing trade war and
the potential for India to fill in the gaps left by America in the Chinese