India to take up widening trade deficit issue with China

[huaxia rox]

India to take up widening trade deficit issue with China - Economic Times


New Delhi:India will once again ask China to take steps to cut the widening trade gap between the two countries when Commerce Minister Anand Sharma meets his Chinese counterpart later this month.

Sharma is expected to impress upon Commerce Minister Chen Deming that specific measures are needed to boost Indian exports to China, especially in the area of pharmaceuticals and information technology. The meeting is scheduled for August 27.


Trade deficit between the neighbours widened to $40 billion last year. At $17.9 billion, India's exports to China in 2011-12 were less than a third of the $57.55 billion worth of goods it imported from the country.

"We have been taking up the issue of rising trade deficit with China for several years now," an official told ET, adding, "Although we have had assurances from the highest level, including the Chinese Premiere, that steps would be taken to address it, nothing has happened on the ground."

India, which has a high current account deficit, is determined to see some measures being taken by Beijing, which accounts for over a fifth of Delhi's total trade deficit. "We have already identified some restrictions that China could address to help India increase exports," the official added.

India has asked China to remove procedural bottlenecks in trade, including time-consuming licensing procedures that Indian drugs and pharmaceutical companies often face. It also wants Beijing to increase import of IT and IT-enabled services from India.

At a workshop organised by the National Security Council Secretariat last year, concerns were raised about India's growing dependence on China and forecasts that Beijing could account for 75% of india's manufacturing consumption in the next five years.

 

[no smoking]

India has asked China to remove procedural bottlenecks in trade, including time-consuming licensing procedures that Indian drugs and pharmaceutical companies often face. It also wants Beijing to increase import of IT and IT-enabled services from India.

Maybe india should do some homeworks first--pointing out what is time-consuming procedures specifically designed for indian drugs and pharmaceutical companies. If China is doing the same to every foreign pharmaceutical company, then that is a standard procedure. India should go to WTO court with other countries if it think that is against WTO laws. However, india is the only one make complaint in this area. It seems indian companies have some blame to share.

Regarding IT, tell me how many indian programmers can speak mandrine and how many indian managers have working experiences in Chinese business circle. If indian companies don't have ability to communicate with Chinese customers, I don't know what services or IT software they can sell in China.

 

[Armand2REP]

India should keep slapping tariffs on Chini goods until that trade deficit goes down. Then they will get the message.

 

[Energon]

India should keep slapping tariffs on Chini goods until that trade deficit goes down. Then they will get the message.

The only message here is that India's output is heavily stunted forcing it to remain a net importer. This is not China's fault. Protectionism has never worked for India, in fact it is this flawed economic policy that has kept India uncompetitive. Ratcheting up a flawed policy as a response to a problem it created in the first place is counterproductive to say the least.

If India really wants to reduce its deficits it has to work toward increasing its exports. Labor reform, infrastructure development and clamping down upon corruption might be a good place to start.

 

[Bhadra]

China and India need to understand each other in the same way India and France would understand each other, India is not stamped chinese enemy and vice versa ... we ARE TWO NATIONS AND MUST EXIST SUCH...

 

[tony4562]

India should keep slapping tariffs on Chini goods until that trade deficit goes down. Then they will get the message.

I just don't see how well your idea would go down if there is no real alternative available from inside India. India's problem lies in her utter weakness in manufacturing. High tariffs would sure kill off chinese imports, but then India would have to buy the same goods from another country at twice or perhaps triple the original price.

 

[Oracle]

I just don't see how well your idea would go down if there is no real alternative available from inside India. India's problem lies in her utter weakness in manufacturing. High tariffs would sure kill off chinese imports, but then India would have to buy the same goods from another country at twice or perhaps triple the original price.

Other countries goods have high quality. Nothing in China has quality, not even your shiny metro rail, which has killed many of your own subjects.

 

[Armand2REP]

I just don't see how well your idea would go down if there is no real alternative available from inside India. India's problem lies in her utter weakness in manufacturing. High tariffs would sure kill off chinese imports, but then India would have to buy the same goods from another country at twice or perhaps triple the original price.

There are alternatives in and outside India. Foreign companies form JVs and bring production technology putting Indians to work the same as they do in China. That is why foreign power equipment makers are not getting slapped with tariffs unlike Chinis who just dump goods. The policy is good for job creation and technology absorption. Anything China dumps needs to be slapped with tariffs which is most things.

 

[tony4562]

Other countries goods have high quality. Nothing in China has quality, not even your shiny metro rail, which has killed many of your own subjects.

Here we go again. Chinese products may not be up to german quality, they run circles around anything India can offer. India is still despite all the hype (busted already) one of the absolute poorest nations on this planet. Yes, the indian elites like the ones who frequent this forum, probably can afford goods from Japan or Germany, but the vast majority of indians live well below the UN poverty line and for them a 1000 dollar iPhone is simply out of question whereas value-oriented chinese goods fit right in. China exports 2 trilion dollars of worth of quality goods, but of course not everything reaches the shore of India, for example my 7000 dollar lenovo laptop would be way to expensive for 99.9% of indian consumers, thus they have to make do with 500 dollars ones which too are made in China.

Just remember that china exports 6 times more than India does, and in terms of finished goods the diaprity is even greater, there is a reason for that.

 

[trackwhack]

^^^ He has a Seven Thousand Dollar Lenovo Laptop.

 

[tony4562]

There are alternatives in and outside India. Foreign companies form JVs and bring production technology putting Indians to work the same as they do in China. That is why foreign power equipment makers are not getting slapped with tariffs unlike Chinis who just dump goods. The policy is good for job creation and technology absorption. Anything China dumps needs to be slapped with tariffs which is most things.

Foreign JVs like Suzuki? Unfair tariffs have been placed on chinese power equipments, that's why your ancestrral land is having rolling blckouts on daily basis. Foreign equipment company is not gonna sell you anything without making a profit, how about 3 times the chinese price? India has shot herself in the foot here. India is left with no choice but to surrender to chinese power equipment maker because no one else can save India from the utter darkness.

 

[tony4562]

^^^ He has a Seven Thousand Dollar Lenovo Laptop.

Lenovo W510 workstation PC with touch screen, dual SSD disks and all the other extra. And lastly I live in a pretty expensive country.

 

[Tolaha]

Foreign JVs like Suzuki? Unfair tariffs have been placed on chinese power equipments, that's why your ancestrral land is having rolling blckouts on daily basis. Foreign equipment company is not gonna sell you anything without making a profit, how about 3 times the chinese price? India has shot herself in the foot here. India is left with no choice but to surrender to chinese power equipment maker because no one else can save India from the utter darkness.

Drunken typing is injurious to one's image! But luckily in your case, its not a problem!

 

[trackwhack]

Lenovo W510 workstation PC with touch screen, dual SSD disks and all the other extra. And lastly I live in a pretty expensive country.

Wow, awesome. We envy you. Btw, that retails for under 1500 USD. You're obviously not smart enough to not get ripped off.

Also, if China is so damn good and not one of the poorest nations in the world, why did you run away? CCP did not let you enjoy your wealth there?

 

[Tolaha]

Lenovo W510 workstation PC with touch screen, dual SSD disks and all the other extra. And lastly I live in a pretty expensive country.

 

[Tolaha]

After all this, you got to give it to tony4562. He comes sprouting his nonsense and keeps getting routinely exposed which is followed by more humiliation. But that doesnt stop him! He keeps coming back though unfortunately not any better! Kudos Tony on your perseverance! :thumb:

 

[tony4562]

Wow, awesome. We envy you. Btw, that retails for under 1500 USD. You're obviously not smart enough to not get ripped off.

Also, if China is so damn good and not one of the poorest nations in the world, why did you run away? CCP did not let you enjoy your wealth there?

Show me a place where you can get W510 (now superceded by W520) with dual SSDs, core i7 quad core-processor,extra graphics card and touch screen for less than 1500 dollars. I undertand that this thing is probably 30% cheaper elsewhere, but as someone who lived a good while in the US, i am damn certain that 1500 dollar is completely non-sense.

Another thing I'm not born in China and I am not chinese citizen either. I am pro-china not because I like CCP but because of my east asian heritage. I do have relatives living in China, they generally have a darn good life over there.

 

[trackwhack]

Show me a place where you can get W510 (now superceded by W520) with dual SSDs, core i7 quad core-processor,extra graphics card and touch screen for less than 1500 dollars. I undertand that this thing is probably 30% cheaper elsewhere, but as someone who lived a good while in the US, i am damn certain that 1500 dollar is completely non-sense.

Another thing I'm not born in China and I am not chinese citizen either. I am pro-china not because I like CCP but because of my east asian heritage. I do have relatives living in China, they generally have a darn good life over there.

OK. In fact, I will upgrade you to a W530 and give you back $40 for a dinner with yourself after shopping.

Description
ThinkPad W530 - 1 Year Depot Warranty Edit
Processor: Intel Core i7-3610QM Processor (6M Cache, up to 3.30 GHz) Edit
Operating system: Windows 7 Home Premium (64 bit) Edit
Operating system language: Windows 7 Home Premium 64 - English
Display type: 15.6" FHD (1920 x 1080) LED Backlit AntiGlare Display, Mobile Broadband Ready Edit
System graphics: NVIDIA Quadro K1000M Graphics with 2GB DDR3 Memory Edit
Total memory: 4 GB PC3-12800 DDR3 (1 DIMM) Edit
Keyboard: Keyboard - US English Edit
Pointing device: UltraNav with Fingerprint Reader Edit
Camera: 720p HD Camera with Microphone Edit
Hard drive: 128GB Solid State Drive, SATA3 Edit
Optical device: Intel 240 GB FDE Solid State Drive, Serial ATA3 with Bay Adapter Edit
System expansion slots: Express Card Slot & 4-in-1 Card Reader Edit
Battery: 6 Cell Li-Ion TWL 70+ Edit
Power cord: 170W Slim AC Adapter - US (2pin) Edit
Integrated WiFi wireless LAN adapters: ThinkPad 1x1 b/g/n Edit
Integrated mobile broadband: Mobile Broadband upgradable Edit
Language pack: Publication - US English

YOUR SYSTEM SUMMARY
Price: $2,595.00
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Total $1,459.92


This is from the Lenovo Website. http://shop.lenovo.com/SEUILibrary/controller/e/web/LenovoPortal/en_US/builder.workflow:Enter?sb=:00000025:00003382:


And stop you BS about the touchscreen. Its not even a standard option. If it was then add $100 for that.

How many more times do you want to get beaten up?

In fact for another $500, I can add another TB of SSD storage. What more do you want?

Maybe the guy you paid $7000 was Chinese? Your race has a reputation for ripping people off.

 

[Tolaha]

Show me a place where you can get W510 (now superceded by W520) with dual SSDs, core i7 quad core-processor,extra graphics card and touch screen for less than 1500 dollars. I undertand that this thing is probably 30% cheaper elsewhere, but as someone who lived a good while in the US, i am damn certain that 1500 dollar is completely non-sense.

Another thing I'm not born in China and I am not chinese citizen either. I am pro-china not because I like CCP but because of my east asian heritage. I do have relatives living in China, they generally have a darn good life over there.

From 7000 to 1500 is a big fall you know. A BIG FALL! You know what that means, do you?

 

[Armand2REP]

Foreign JVs like Suzuki? Unfair tariffs have been placed on chinese power equipments, that's why your ancestrral land is having rolling blckouts on daily basis. Foreign equipment company is not gonna sell you anything without making a profit, how about 3 times the chinese price? India has shot herself in the foot here. India is left with no choice but to surrender to chinese power equipment maker because no one else can save India from the utter darkness.

The tariffs are not unfair when Chinis are dumping them on the market. They want Made in India sticker on the products so only foreign companies with JVs get off. China doesn't JV but dump. It was never 3X the price but 20% difference which is made up with the tariffs. India is saving jobs ad gaining production experience... something it doesn't get buying dumped Chini shelf products.