Trade with Neighbouring Countries

India enjoys trade surplus with all members of SAARC comprising Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.  Trade between India and China currently stand at USD $ 65.87 in 2013-14.  China is currently the largest trading partner in bilateral trade.  Myanmar (an ASEAN country) also enjoys a high level of bilateral trade through border trade arrangement at Moreh (Manipur). Joint Trade and Investment Agreement between India and ASEAN group of countries is expected to also boost bilateral trade with South East Asian countries.

The details of trade between India and the SAARC countries, China and Myanmar were as under during the last three years:-

Value in US $ Million

(P) – Provisional

An adhoc working group for reductions in ‘sensitive list’ has been formed under South Asian Free Trade Area (SAFTA). Bhutan, India, Maldives and Pakistan have put forward a proposal for reduction in the Peak Tariff Rate to 0%-5% by 2020. There has been a sharp expansion of bilateral trade with China and also a rise in the bilateral trade deficit between India and China. The 9th Session of India-China Joint Group on Economic Relation (JEG) at the Ministerial Level was held in August 2012.  Recently, 3 MoUs were signed between the Ministry of Commerce of India and the Ministry of Commerce, China in May 2013. These measures are expected to strengthen trade relations with China. To enhance bilateral trade with Myanmar the India-Myanmar Border Trade Committee, India Myanmar Border Haat Committee and Joint Trade and Investment Forum have been formed. The India- ASEAN Trade in Goods (TiG) signed in August 2009 is also expected to boost bilateral trade with South East Asian Countries.

The information was given by the Minister of State (Independent Charge) of the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.