India May Impose Safeguards To Bridge Trade Deficit With China

In order to bridge the wide trade gap, which was unsustainable in the long run, India may put in place safeguards to curb imports from China. Interestingly, Prime Minister Narendra Modi invited Chinese companies to set up manufacturing unit in the country.

According to Department of Industrial Policy and Promotion (DIPP) secretary Amitabh Kant, "This trade deficit (between India and China) is not sustainable in the long run and therefore it is very important to understand for Chinese companies that in the coming years, India will have to put some kind of safeguards whether it is in terms of standards."

"India will do this because (India) can not sustain this (trade deficit) for over a long period," he added.

Currently, India's trade deficit with China stands at about $36 billion, with exports totalling only $15 billion against $51 billion imports.

Kant said that currently it is the right time that Chinese companies should increase invest in India and set up manufacturing bases.

"Chinese companies should actually manufacture the same goods (which they export to India) in India. We welcome Chinese companies. You please invest and manufacture in India. We will welcome telecom equipment, power equipment but kindly manufacture in India. Our government wants Chinese companies to make in India and use India as an export base for other places," he added. (Image: indiatimes)