Prime Minister Manmohan Singh's official tour to China started with a business conference on Monday in Beijing, where he emphasised on the deepening interaction between the Asian giants whose powerful economies are increasingly driving world trade.
Manmohan Singh’s visit to China is considered as significant in both the countries, as his visit is the first by any Indian Prime Minister in five years. Both the sides are taking it as to inject new vitality into the strained relationship between the two countries.
Dr. Singh said that in order to promote vision of economic cooperation and roadmap for its implementation, we first have to develop a strategic plan for the future. This, he said, would ensure a long-term strategic perspective that looks ahead to “future challenges and opportunities guiding our ties.”
Further he said, businessmen of the two countries should “develop profitable business models that suit in our complementarities and competitive strengths, and the special needs of large markets like ours. He also said that there is the need for acquiring insights into each other’s markets, business customs, and management styles.
“Doing business is about developing understanding and trust in your partners. A deeper understanding of the macro-economic outlook, the regulatory regimes and of factors that have a bearing on the competitiveness of enterprises,” was the need of the hour, the Prime Minister said.
Addressing business community from both the sides, the Prime Minister said, "I would like to assure this gathering that both governments will work together to put in place an enabling environment for greater trade, investment and economic interaction. This has to include creating a level-playing field by addressing such issues as non-tariff barriers, Intellectual Property Rights (IPR) protection and market-related exchange rates.”
In later half on Monday Singh was due to meet with Chinese Premier Wen Jiabao following a formal welcoming ceremony at the Great Hall of the People, the hulking seat of the national legislature.
Manmohan Singh highlighted an unprecedented expansion in bilateral trade surging to $37 billion (€25.04 billion) last year. Also after initiating Direct flights between the two countries the number of visitors have grown to a large scale and the trust and contacts also have grown as shown by their militaries staged joint drills for the first time last year.
He said that we both are fortunate that the growing links and relationship come despite lingering suspicion dated back in 1962, when the short but bloody war fought between the two countries. The war produced border dispute, which is still unresolved to an extent.
Prime minister was also due to meet President Hu Jintao and the Communist Party's official, Wu Bangguo. He planned to address a government think tank and will also co-preside over a ceremony marking the founding of a joint medical team.
On Sunday, Singh met with members of the Indian business community, who complained about China's $9 billion (€6 billion) trade surplus with India and a lack of investment opportunities for Indian businesses in China.
Pointing to the adverse trade deficit with China, Singh said the challenge before India in the area of trade was to diversify export basket to China. The Confederation of Indian industry, CII Chief Sunil Mittal and Federation of Indian Chambers of Commerce and Industry, FICCI President F Khorakiwala comprising some other industry leaders had sought the Prime Minister's intervention with Beijing for early removal of trade and non-trade barriers imposed by China.
"I would urge Indian business to vigorously pursue opportunities for expanding non-traditional items of export. Such efforts, when matched by greater market access for Indian goods in China, will help to bridge the rising trade deficit between us," Singh said.
"We will work together with the Chinese government to remove administrative barriers and simplify regulatory regimes in order to move forward in these areas," he said. The services sector accounts for more than 50 per cent of India's Gross Domestic Product and more than 40 per cent of China's GDP.
Moreover, Manmohan Singh also emphasised that the business communities of the two countries should develop a deeper understanding of the macro economic outlook, the regulatory regimes, and other factors that could enhance the fair competitiveness of enterprises.
|
|
Comments:
