Finance Minister Nirmala Sitharaman has raised strong concerns over China’s trade practices, saying non-tariff barriers are the biggest hurdle for Indian exporters. She explained that despite India’s repeated efforts for more than a decade, China has not allowed fair market access to Indian products. Items like generic drugs, bovine meat, and agricultural produce face restrictions, even though demand exists in China.
Because of these barriers, India’s trade deficit with China has more than doubled in ten years, reaching $112 billion in FY26 compared to $52.7 billion in FY16. Sitharaman highlighted that India prefers dialogue over punitive measures, unlike some countries that impose counter duties. She said India believes in negotiating patiently rather than retaliating.
The minister also called for a review of India’s trade pact with ASEAN, noting that its benefits are tilted against India. She defended India’s decision to stay out of the Regional Comprehensive Economic Partnership (RCEP), saying it offered little advantage.
On a positive note, Sitharaman praised Indian exporters for finding new global markets despite challenges, with exports rising 23% in September. She added that India is focusing on bilateral trade deals with partners like the EU, Australia, UAE, and the US to strengthen its position in global trade.
India’s approach, she said, is to remain committed to multilateralism while building resilience through bilateral agreements.