Current Affairs

China says no to India's proposal for bilateral trade in domestic currencies

China has not accepted India's proposal to carry out bilateral trade in local currencies which was aimed at bridging the ballooning trade deficit with the neighbouring country.
China says no to India's proposal for bilateral trade in domestic currencies

Details:

  • India's exports to China stood at only USD 13.4 billion, imports aggregated to USD 76.4 billion in 2017-18, leaving a trade deficit of USD 63 billion. 
  • It was USD 51.11 billion in 2016-17. 
  • India had suggested China for renminbi-rupee trade to boost its exports and tackle the widening trade deficit concern.
  • The issue was discussed in an inter-ministerial meeting in October. 
  • In the meeting, it was suggested to the Reserve Bank of India and the Department of Economic Affairs would look at the possibility of exploring renminbi-rupee trade with China.

One must know:

  • The Indian industry and exporters have time and again raised the issue of increasing trade deficit with China and have asked the government to seek greater market access for domestic goods in the Chinese market. 
  • Recently, China has permitted exports of rice and sugar. 
  • But India wants to increase exports of several other items, including pharmaceuticals, engineering and services.

Question:

Q. Which country has not accepted India's proposal to carry out bilateral trade in local currencies which was aimed at bridging the ballooning trade deficit with the respective country?
a. Japan
b. Germany
c. France
d. China
China says no to India's proposal for bilateral trade in domestic currencies China says no to India's proposal for bilateral trade in domestic currencies Reviewed by Inderjeet Virdi on December 03, 2018 Rating: 5

No comments: