THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a): The details of top 50 principal commodities in 2013-14 of export and import with China, including heavy industries items, electronic components, steel and plastic goods for last three years and the current year is attached as Annex-I.
(b): Details of trade and trade deficit with China during the last three years and the current year are given below:-
Bilateral Trade between India and China - 2009-10 to 2013-14 and the current year
Value in USD Million Year Export Import Total Trade Trade Deficit 2011-12 18,076.55 55,313.58 73,390.13 37,237.03 2012-13 13,534.88 52,248.33 65,783.21 38,713.45 2013-14 14,824.36 51,034.62 65,858.98 36,210.26 2014-15 9,236.39 46,007.42 55,243.82 36,771.03 (P)(April-Dec.)
(P) :Provisional (Source; DGCI&S)
As shown in the above table the trade deficit has varied over the period. Chinese exports to India rely strongly on manufactured items meeting the demand of fast expanding sectors like telecom and power. India’s exports to China are characterized by primary products, raw material and intermediate products. The exports to China face tariff and non-tariff barriers for agri- cultural products, and limited market access in other products.
(c): Manufactured items catering to India’s Power, Telecom, and other fast growth sectors contribute a significant proportion towards China’s imports into India. Other major imports are of products such as computer hardware and peripherals, bulk drugs and drug intermediates, project goods, fertilizers and chemicals, consumer electronics, iron and steel and products thereof etc. These imports feed the growing demand in India for such goods which China, due to variety of reasons, is able to export to India at competitive prices. The Government, mindful of the interest of domestic manufacturers has contin- ually taken steps to ensure that all imports into India strictly adhere to the applicable domestic laws and regulations pertaining to technical specifications, environment and safety norms, which are notified from time to time. Appropriate action is initiated in case of violation of these norms. Furthermore wher- ever Indian industry faces a threat or is seriously injured due to surge in imports of a particular product, appropriate trade remedy measures are immediately initiated. Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated 171 investigations on imports from china and anti-dumping measures are in force on 75 products, as at end of February 2015.
(d): Yes, Madam. Representations received in this regard were examined and taken into consideration by the Department of Revenue while finalising the proposals for the Union Budget 2015-16.
(e): In order to boost exports and to address the widening trade deficit Government has taken a number of measures which, inter-alia, include market study initiatives to identify specific product lines with export potential, actively taking up issues relating to tariff and non tariff barriers in bilateral meetings and institutional dialogues, measures to support exports through various incentive mea- sures and product and market specific incentive schemes etc. As regards trade with China, India has impressed upon China to recognise the need for reduction in trade imbalance for a long term, sustainable and harmonious development of eco- nomic co-operation between two countries. During the 10th meeting of the India-China Joint Economic Group (JEG) at Ministerial level, held in September 2014 in Beijing, both countries reaffirmed their determination to expand and diversify bilateral trade and economic cooperation. The two sides agreed to take positive steps towards rebalancing bilateral trade and addressing the existing structural imbalance in trade that has a bearing on its sustainability. Both countries signed the “Five- Year Development Program for Economic and Trade Cooperation” wherein reduction of trade imbalance over the next 5 years has been identified as one of the principal objectives of trade and economic co-operation between India and China.
All imported goods in India are subject to domestic laws, rules, orders, regulations, technical specifi- cations, environment and safety norms, that are notified from time to time. The Government takes appropriate action in case goods imported from any source are found to violate these regulations and threaten human, animal or plant life or health. Additionally, Directorate General (Safeguards) is empowered to temporarily restrict import of products by imposition of additional duty or quantitative restrictions (QRs) if Indian industry is seriously injured or threatened with injury caused by a surge in imports.
