Proposing more ambitious bilateral trade targets, Prime Minister Manmohan Singh on Monday said India would work together with China to remove administrative barriers and simplify regulatory regimes to expand business in services sector and discuss a Regional Trading Agreement.
Addressing a business summit of Indian and Chinese industrialists and businessmen, Singh said both the Indian and Chinese government would work together to put in place a more enabling environment for greater bilateral trade, investment and economic interaction.
?This has to include creating a level playing field by addressing such issues as non-tariff barriers, intellectual property rights protection and market-related exchange rates,? he said.
Noting that the bilateral trade with China has doubled in the last two years, Singh said the trade target of $20 billion set by 2008 was reached two years ahead of schedule and the revised target of $40 billion by 2010 was likely to be achieved two years in advance.
?This makes me wonder whether our two governments have been underestimating the capabilities of our respective industries and a strong urge to do business with each other. We therefore propose to set more ambitious targets,? he said ahead of his meetings with the top Chinese leadership.
Touching on a point of concern to the Indian trade and industry ?adverse trade deficit with China?Singh said the challenge before India in the area of trade was to diversify export basket to China.
?In the area of trade, the challenge before us is to diversify our exports basket to China. I would urge Indian business to vigorously pursue opportunities for expanding non-traditional items of export. Such efforts, when matched by greater market access for Indian goods in China, will help to bridge the rising trade deficit between us,? he argued.
To achieve these aims, the PM outlined a three-pronged strategy for apex chambers like CII and Ficci. For starters, they should develop a strategic plan for the future so that they have a vision of Indo-Chinese cooperation and a roadmap for its implementation.
Secondly, they should develop profitable models that factor in complementaries and competitive strengths: ?The opportunities are many and innovation is the key to exploiting them,? he added.
Lastly, the business community of both countries needed to acquire insights into each other?s markets.
Singh, also mentioned that there were enormous opportunities for both India and China to expand trade in services, especially construction and engineering, education, entertainment, financial services, IT and IT-enabled service, transport, tourism and health.
