The shift in China's economic policy from an export-driven to one that is domestic consumer-driven would likely prove beneficial to Indian exporters resulting in helping narrow the trade deficit between the two countries.
''Recently unveiled 12th Five-Year Plan for 2012-16 of China, with a strong slant for a domestic consumer-driven economy will give enormous opportunity for Indian exporters to access China's huge consumer market in the coming years,'' the commerce ministry said in a statement.
At a meeting between Jiang Jufeng, governor of Sichuan province in China and commerce and industry minister Anand Sharma the two raised concerns over the widening trade deficit. For 2010 the trade deficit stands at $20.02 billion as against $15.87 billion in 2009.
According to Sharma there was great potential for cooperation between the regions in terms of trade, engineering contracting and service outsourcing. So far, Indian investments in seven projects in Sichuan, have a contracted foreign investment of $10.59 million.
In January, total volume of import and export between Sichuan and India surged 41.64 per cent to $129 million on yearly basis. Imports into India from the province include electrical and mechanical equipment, audio and video equipment, textiles, metalware and chemicals while exports include minerals, chemicals and electrical and mechanical products.
Meanwhile according to Fitch Ratings, India is better placed against China to regulate the flow of bank credit.