India Urges China on Market Access, Trade Balance for Stronger Ties
By Business Desk
India’s Foreign Minister S Jaishankar pressed China on market access and trade imbalances, stressing border peace and stable supply chains for improved bilateral relations.
Indian Foreign Minister S Jaishankar recently urged his Chinese counterpart, Wang Yi, to tackle critical issues of fair market access and a significant trade imbalance. These discussions, held on the sidelines of a regional meeting in Manila, aimed at mending and strengthening bilateral relations between the two nations.
India’s concerns extend beyond trade figures to include the need for predictable supply chains. Jaishankar underlined that maintaining peace and tranquility in the border regions remains fundamental for normalizing overall ties.
Addressing Core Economic Disparities
The economic relationship between India and China shows a substantial imbalance, which India seeks to rectify. This disparity is evident in the latest trade figures, highlighting India’s reliance on Chinese imports.
- India’s imports from China in fiscal year 2025/2026 reached US$132 billion, marking its highest import volume from any nation.
- The total bilateral trade for the same period stood at US$151.10 billion.
- This resulted in a trade deficit exceeding US$100 billion for India.
Such a significant trade gap underscores the urgency of India’s call for more equitable market access. Easing restrictions on Chinese investments in certain industries this year reflects India’s strategic effort to rebuild ties.
Recent Diplomatic & Trade Movements
China’s Foreign Minister, Wang Yi, acknowledged joint efforts that have led to a gradual resumption of institutional exchanges. He noted that bilateral trade volume has reached a new high, signaling China’s willingness for increased cooperation.
Several concrete steps have been taken since October 2024 to foster better understanding and interaction:
- India and China have resumed direct flights.
- New Delhi streamlined the approval process for business visas for Chinese professionals.
- Border trade is scheduled to recommence on August 1, effectively ending a six-year hiatus.
These developments signify a cautious yet deliberate move towards normalising relations, which had been strained following the 2020 Himalayan frontier clash that resulted in casualties on both sides.
Ultimately, both nations continue to focus on establishing agreed mechanisms for future cooperation. This sustained emphasis on peace and tranquility in border areas remains key to fully normalizing the broader bilateral relationship.