By IANS
Beijing : China has decided to send buying missions to India to diversify the basket of exports to Beijing in a bid to cut New Delhi’s growing trade deficit, Commerce Minister Kamal Nath said Monday.
The minister told a news conference that India was concerned about the imbalance of trade against New Delhi even as economic ties between the two countries balloon.
“In my long meetings with my counterpart Chen (Deming), I raised many issues and he clearly recognised that such a large trade imbalance is not desirable and sustainable,” Kamal Nath said.
“He offered to send buying missions to India frequently to promote a more diversified basket of exports from India to China. I have requested FICCI (Federation of Indian Chambers of Commerce and Industry) and CII (Confederation of Indian Industry) to host these promised missions and find suitable niche areas where we have core competency with globally competitive edge.”
Kamal Nath also raised with Chen China’s restraining policy of export of coking coal to India for the steel industry.
“I expressed our concerns at China putting a huge cess on coking coal, increasing its price for India’s buyers. There was no such cess in 2005 and today it is as high as 25 percent.
“On the other hand, we are exporting iron ore for their need at an export duty realisation of only one percent. We lowered this duty at their request and it is now for the Chinese side to reciprocate in the area of coking coal.”
Kamal Nath said India’s steel industry was asking for a 40 percent allocation of coking coal exports for India as China had done for the European Union for some time earlier.
The minister also took up with Chen the issue of exports of fruits and vegetable. “We have permission for export of only three from the list of 17 that has been agreed between India and China.
“We hope the Chinese government will expedite the issues of quarantine and other required permissions in this area to allow more exports of fruits and vegetables to China.”