India’s trade ties with Beijing taking time to ripen

New Delhi struggles to make big trade breakthrough with China

NEW DELHI, Dec 6, (RTRS): China and India may be talking about improving their trade relationship but there is little action to go with the words.

According to Indian government officials and representatives of various Indian trade bodies, progress is very slow – and may even be getting slower after last weekend’s truce between the United States and China in their trade war.

Both India and China have sought to rebuild trust after a armed standoff over a stretch of the Himalayan border last year.

Indian Prime Minister Narendra Modi and Chinese President Xi Jinping have met a number of times this year to give impetus to the trade discussions. The latest was last week, when they met on the sidelines of the G20 meeting in Argentina.

Indian and Chinese officials said after that meeting there was talk of Beijing increasing its soymeal, rapeseed meal, rice and sugar imports from India, while China would push for more Chinese exports of dairy products, apples and pears to India.

India is also keen to increase its exports of drugs to China.

In reality, though, getting such exchanges turned into deals is going to be a laborious process.

“When we say the Chinese are receptive, it means the talks are happening, but it’s going slow,” said one senior Indian government official with direct knowledge of the discussions. “It can be termed as progress because just a few months ago, we weren’t even talking,” said the official, who did not wish to be named because he is not authorised to talk to media.