India Blames Chinese Trade Barriers for $100 Billion Deficit

Finance Minister Nirmala Sitharaman identified China's use of non-tariff barriers as the primary obstacle to improving bilateral trade and relations. Speaking at an International Monetary Fund meeting, Sitharaman stated that Beijing's phytosanitary rules restrict Indian exports of vegetables, beef, and generic drugs, contributing to a trade deficit that has exceeded $100 billion this year.

Sitharaman noted that India has not retaliated with countervailing duties or its own non-tariff barriers despite the growing imbalance. Her comments align with previous statements from External Affairs Minister S. Jaishankar regarding the lack of a level playing field for Indian goods in China.

Beyond the relationship with China, Sitharaman described India's trade agreements with Southeast Asian nations as skewed and in need of refashioning. She also flagged India's economic vulnerability due to its heavy dependence on imported fertilizers and crude oil.