India's trade with China will hit the $100-billion mark over the next four years if the current trends continue even as India's share of exports in India-China bilateral trade will mount to $70 billion by then.
At current trends India's share of exports in bilateral trade with China is about 30 per cent and with bilateral trade rising to $100 billion by 2015, India is expected to run a balance of trade of $70 billion.
With an increase in bilateral trade, there is also a possibility that the gross trade deficit may further increase, minister of state for commerce and industry Jyotiraditya M Scindia informed the Rajya Sabha in a written reply today.
India needs to make continued efforts to increase the share of its exports to China in order to avert a piling up of trade deficit, the minister informed.
With a view to achieve balance in the bilateral trade, efforts are being made to diversify the trade basket with emphasis on manufactured goods. The issue of trade deficit was also raised during the 8th session of India-China Joint Group on Economic Relations, Trade Science and Technology (JEG) held in January 2010, he said.
Under the memorandum of understanding signed between India and China, the Chinese side had assured the Indian side that it would increase its imports from India.