India to Step-up Agri-Diplomacy with China
- 19 Nov 2018
- 2 min read
India is looking forward to
Reasons For India's "Agri-Diplomacy"
- Trade Deficit
- India is looking for ways to bridge the huge trade deficit of more than $60 billion with China. China accounted for about 39% of India’s trade deficit in 2017-18.
- India’s total trade with China reached over $89 billion in 2017-18, of which Chinese exports to India were around $76 billion.
- US-China Trade War
- Both the US and China are imposing tariffs on each other. Hence, China is now opening up to non-US imports in order to diversify its import basket.
- Beijing recently imposed new tariffs on many American farm produce, including soybeans, corn, wheat, cotton, rice, sorghum, beef, pork, poultry, fish, dairy products, nuts
- India is hoping to take advantage of the Sino-US trade war by exporting more soybean
taken to Cover Trade Deficit
ShanghaiCooperation Organisation (SCO) Summit in Qingdao in 2018. India and China signed an agreement to include the export of non-Basmati varieties of rice from India. China is a $1.5-$2 billion market for Indian rice
- India has also signed an agreement with China to increase the export of sugar from India.
- If India has to cover the huge trade deficit with China, it has to look beyond agri-diplomacy. There are many areas in which trade with China can be increased to cover trade deficit like that pharmaceuticals, information technology services and tourism, in which India has a significant global footprint, but a minuscule presence in China.
- At domestic front, India has to take significant efforts like
modernizationof agriculture to make it competitive at globallevel, the high price of India's farming products is a major obstacle.