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India, China plan FTA breakthrough
What has happened?
Commerce Minister Suresh Prabhu and his Chinese counterpart, Zhong Shan, met here on Monday for the first high-level contact between both sides that decided to “reset” their ties this year in the run-up to a Xi-Modi summit meeting in China.
Background
1th meeting of the India-China Joint Group on Economic Relations, Trade, Science and Technology (JEG)
Improving economic ties with China
Growth in bilateral trade:In 2017, the bilateral trade reached $84.4 billion, registering a growth of 20.3% from the year before and a record high
Import with China increased:China’s import from India soared by 40%, helping ease the bilateral trade imbalance
Consensus Reached in the meeting on following points
Mutual co-operation on OBOR and Indian development initiatives: The two sides would jointly promote the synergy between China’s Belt and Road initiative and India’s development strategies, including the “15-year Development Agenda”, “Make in India” and “Digital India” to deepen mutually-beneficial cooperation and share development experience
Promotion of Indian exports to China: The two sides would promote India’s exports to China so as to address the trade imbalance between the two countries
Special Working Group: The two sides agreed to set up a special working group to draw a road map for developing two-way trade
RCEP agreement:Both sides would demonstrate flexibility to reach at an early date a modern, comprehensive and mutually beneficial RCEP agreement of high standards.



