India eases border trade with China

India_china11_PTIBarely a fortnight before Prime Minister travels to China, India has relaxed the border trade by raising the transaction value of consignments between the two neighbors.

“For border trade between India and China, the CIF (Cost, Insurance and Freight) value per consignment is being increased from Rs. 1,00,000 to Rs. 2,00,000 in case of Nathula, while for Gunji and Namgaya Shipkila, the existing CIF value limit of Rs. 25,000 is being enhanced to Rs. 1,00,000,” said the Directorate General of Foreign Trade.

Both Asian giants are major trading partners for each other, and traders located in the border areas mostly import textile accessories such as carpets, blankets, readymade garments, jackets and quilts, and several other items mostly shoes, vegetable oil, rice, processed food and canned food.

India’s trade with China is burgeoning by the day, but the ballooning trade deficit has become a contentious issue in the bilateral economic relationship. In financial year 2013-14, New Delhi’s trade deficit with China went up to $37.8 billion, when bilateral trade was $65.85 billion.

The primary agenda of Mr Modi’s visit to China is widely expected to be economic and will seek to attract greater Chinese investment. In his discussions with the Chinese leadership, Mr Modi is expected to take up the issue of trade deficit and giving Indian products a greater access to the Chinese market

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