Nirmala Sitharaman Says Trade Barriers A Hurdle To China-India Ties

"With China, I think our trade balance is against us, and it is growing exponentially," Sitharaman said on the sidelines of the International Monetary Fund meeting in Bangkok, speaking with the Atlantic Council. "China uses non-tariff barriers unhesitatingly" and that is "the biggest hurdle in the in the trade between India and China."

Sitharaman cited phytosanitary rules - restrictions intended to protect against plant pests and diseases - among the barriers facing Indian exporters. She called out China for denying market access to India's goods that have "immense" potential in the mainland, including generic drugs, beef and vegetables.

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India's trade deficit with China has crossed $100 billion so far this year. Yet, Sitharaman said, India has not sought to retaliate with any non-tariff barriers or countervailing duties. Sitharaman's comments come after External Affairs Minister S. Jaishankar said earlier this week that India isn't "getting a level playing field in China."

Beyond India-China ties, Sitharaman also took aim at India's trade relationship with southeast Asian nations, describing existing trade agreements as "very skewed" against India.

While New Delhi intends to maintain its trade agreement with the ASEAN bloc, the terms would need to be refashioned, she said.

India remains the world's fastest-growing major economy, supported by strong consumption and investment. Sitharaman, however, flagged the country's dependence on imported crude oil and fertilizers as a key vulnerability. The bill for those essential imports is "big and growing," she said, adding to the flow of foreign exchange out of the country.

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