Beijing, January 14
India and China firmly grasped the nettle to make business the principal propellant for rapid advancement of the growing bilateral relationship. “Economic cooperation between us has become a principal driver of our strategic and cooperative partnership for peace and prosperity,” was the upbeat note struck by Prime Minister Manmohan Singh in his address at the India-China Economic, Trade and Investment Summit here yesterday.

Despite the sunless, sub-zero weather, the day dawned bright for the Indian visitor with the state-run ‘China Daily’ proclaiming Prime Minister Manmohan Singh’s visit as ‘a milestone’ in a special eight-page supplement produced for the occasion. Dr Singh, who earned top billing in the media, outlined a three-pronged strategy for strengthening economic cooperation through commercial alliances and collaboration in technology transfer and development.

Dr Singh suggested that the chambers of industry and commerce in both countries should develop a strategic plan for a clearer vision of economic cooperation and a roadmap for its implementation. Secondly, he wanted development of profitable business models that factor in our complementarities and competitive advantages keeping in mind the special needs of large markets like ours. Lastly, he exhorted both sides to acquire insights into each other’s markets, business customs and management styles.

However, Dr Singh’s address pointedly called for creating “a level-playing field” by addressing issues such as non-tariff barriers, IPR protection and market-related exchange rates. The reference to a level-playing field is read as a reference to the slow and difficult process Indian ventures, particularly in the pharmaceutical sector are faced with for registration of their products. He prefaced the mention of “level-playing field” with an assurance to the gathering that “both governments will work together to put in place an enabling environment for greater trade, investment and economic interaction.”

To help bridge India’s rising bilateral trade deficit, the Prime Minister urged Indian business to vigorously pursue opportunities for expanding non-traditional items of export and, at the same time, wanted these to be matched by greater market access for Indian goods in China.

Commerce minister Kamal Nath, who has held talks with the Chinese Assistant Commerce Minister Chen Deming a day before and addressed the summit yesterday, also articulated the concern over the growing trade deficit. He said that during his long meetings with Chen he had raised this as well as a number of other issues since such a large trade imbalance is neither desirable nor sustainable. The Chinese Commerce Minister responded by offering to send buying missions to India periodically for promoting a more diversified basket of exports from India.

At a meeting briefing after the Prime Minister’s address at the summit, Nath said he had asked FICCI and CII to host these promised missions. He told journalists that the issue of fruit and vegetable exports had also figured in his discussions.