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Home Exports

Indian food and fruits face restriction in Chinese market

Fiinews by Fiinews
October 17, 2019
in Exports, Imports, Industry Sectors, Investment, Manufacturing
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FIEO worries about Chinese market access

 

FIEO.

 

Indian dairy products, bovine meat, soya bean meal and many fruits are not getting market access in China, which is equally a problem for Indian pharma industry as registration takes enormous time and often delayed for no obvious reasons, FIEO President Sharad Kumar Saraf has highlighted.

He pointed out that India’s untapped exports potential to China is US$18 billion, much more than current exports of US$16.8 billion.

He also noted with concern the high trade deficit with China though it has been narrowed US$53 billion in last fiscal.

But a bigger worry is the market access which is restricting Indian exports to realize its true potential, he stressed.

Saraf welcomed the idea of having institutional mechanism to address trade and investment issues, especially following the Chennai Summit where Prime Minister Narendra Modi had frank discussions with Chinese President Xi Jinping 11-12 Oct 2019.

He also pointed out that the profile of Indian exports is slowing moving to value added segment with auto component, electrical equipment, machineries, specialty chemical exports “though we have still some way to go”.

Saraf welcomed the idea of manufacturing partnership and pointed out that the rising manufacturing cost is compelling Chinese companies to look for relocation, a process accentuated by the tariff war with the US.

India being a large market and having the best of corporate tax rate of 15%, much less than 25% in China, is best positioned to attract such investment with aggressive marketing and handholding support, believes Saraf.

FIEO has called on China to reciprocate to India’s offer of 5-year multiple entry visa for Chinese citizens at affordable cost.

It also hoped that China will also give a fillip to tourism as immense possibility exist in attracting Chinese tourist to India and vice a versa. fiinews.com

Tags: Federation of Indian Export Organisations
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