India is eyeing giving a boost to its exports of food and agro productsNSE -2.34 %, pharmaceuticals, information technology (IT) and services such as tourism to China as it participates in the first China International Import Expo (CIIE).
“These four areas represent very minuscule Indian presence in China contrary to India’s strength and overall global presence,” commerce and industry ministry said in a statement on Monday.
The expo, being held in Shanghai from November 5-10, will help India reduce its trade deficit with China.
China is India’s largest trading partner with a total trade of $89.71 billion in 2017-18. With India’s exports of $13.33 billion, the trade balance is highly in favor of China.
“The CIIE will provide a platform for increasing India’s exports to China. Interactions between the two sides will also expedite market access issues particularly for pharma, IT & ITES, agro and processed food,” said Federation of Indian Export Organisations (FIEO) in a statement which is a lead agency for India pavilion at the fair.
India exported pharmaceutical products worth $15.6 billion in 2017-18 but exports to China was only $41 million, a share of 0.2%. In marine products, exports to China were $161 million out of total exports of $7.4 billion, a miniscule share of 2.17%.
“This provides huge opportunity to increase our exports to China which is further supported by the tariff war between US and China,” said Ajay Sahai, director general, FIEO.
In agri sector (leaving tobacco), China’s share in India’s exports is less than 2.8%. In IT and ITeS, the share is less than 1% though we exported software worth $126 billion globally during the last fiscal.
Reference: Economic Times