Finance Minister Nirmala Sitharaman identified non-tariff barriers as the steepest obstacle in bilateral commerce, noting that limited entry into the Chinese market has been pushing the trade gap between the two nations wider. Her remarks came at a Bangkok panel discussion on India's economic standing, convened alongside the World Bank-IMF Annual Meetings and moderated by Michael Kugelman of the Atlantic Council.
Sitharaman conveyed that her government has repeatedly raised the obstacles encountered by Indian exporters in international markets. Talks and diplomacy, rather than counter-tariff action, were put forward as her government's preferred path for resolving such trade imbalances.
The Finance Minister noted that the trade relationship continues to favour China, with the gap between the two countries' bilateral flows widening despite prolonged dialogue. She added that India had not adopted the approach seen elsewhere globally, where nations facing large imbalances respond by threatening steep tariffs unless corrections are made.
Her remarks pointed to a persistent pattern in which Indian producers find themselves without entry to portions of China's consumer market, despite what she described as substantial demand for those goods. Exporters in well-established international markets still run into barriers, Sitharaman noted.
Pharmaceuticals and agricultural commodities were among the sectors she identified as offering room for Indian businesses to deepen their foothold in the Chinese market. She noted that non-tariff barriers, including regulatory constraints, have kept market entry difficult, adding that India holds a front-rank position in generic pharmaceuticals, bovine meat, vegetables, perishables, and a range of other product categories that carry considerable untapped potential in the Chinese market.
Advocacy for Indian product access in overseas markets has been sustained across roughly ten years, according to the account she gave. The minister noted that, while formal channels exist for investigation and bilateral dialogue on the matter, trade restrictions beyond tariff measures have remained persistently in place, with phytosanitary rules among the various grounds invoked, and those consultations have yet to produce any tangible outcome.
Phytosanitary requirements are designed to guard against the introduction of pests and the spread of plant diseases, setting out the standards that govern plant health protection. Sitharaman contended that exporters had seen little headway on market access even after extended rounds of engagement, though she acknowledged that such rules can serve valid ends.
The Finance Minister also addressed why India opted against matching China's trade restrictions with equivalent barriers or countervailing duties of its own. Acknowledging that trade talks can stretch on at length, she indicated the government remains engaged in the process, while noting that this prolonged approach runs counter to how such negotiations are typically conducted from India's standpoint. The policy path taken runs through that framework rather than deploying countervailing duties or non-tariff barriers as a response to equivalent restrictions imposed by the other party.
Turning to the proposed trade deal between India and the United States, Sitharaman conveyed optimism that negotiations were drawing toward a conclusion, noting that the Commerce Minister had recently indicated both an expectation and a desire to bring the agreement to signature in the near term. She expressed hope that the ongoing discussions between India and the United States would conclude in a trade agreement that serves the interests of both partners as well as broader global commerce. Reaching a deal would set the terms of commerce between the two economies, offering businesses that operate across both markets a firmer foundation on which to plan.
At the multilateral forum, the Finance Minister put forward India's position on international cooperation while also pointing to the country's ongoing work to deepen trade relationships through bilateral agreements. Trade talks on India's agenda span several fronts, with active discussions with the United Arab Emirates, Australia, Canada, and the European Free Trade Association bloc running in parallel with ongoing negotiations directed at the United States.
