India needs to strengthen FTA with China: Rana Kapoor.

India needs to work with China to create a specific Free Trade Agreement (FTA) with a view to plan export of more value-added goods to China in order to boost bilateral ties through economic and trade tie-ups, said Rana Kapoor, president, Assocham.

With the Chinese economy still growing at a rate of 7.5%, there is a huge market for both value added services and goods from India. "We need a two pronged strategy for the Economic Group Meet to succeed in October special initiatives to improve and diversify our export basket to China and also negotiate the removal of non-tariff barriers," he said.

With India's export to China at USD 13.5 billion and imports at USD 52.2 billion, identifying priority products for priority markets like China will improve the trade deficit situation and overall assist in economic revival.
 
"It is to be noted that tourism relations between India and China are still strong. While Buddhist Pilgrimage draws a substantial amount of inbound traffic to India, China is increasingly becoming an attractive MICE destination for Indians. The social impacts of tourism makes it a strong potential bridge to restoring economic and political ties, towards fostering regional peace and solidarity. Export of services like tourism will also boost other small and medium enterprises along with improving the CAD situation."

Source : myiris.com