Beijing, China: January 14, 2008 – China has given a green signal that it shall send  send frequent buying missions to India to diversify its import basket from the country in the backdrop of New Delhi's concern over burgeoning trade deficit. The deficit had crossed $9 billion last year in Beijing's favor.

India also wants to diversify the basket of exports to China by including fruits and vegetables and sought access to its aviation and entertainment sectors and removal of technical and non-tariff barriers specifically in pharmaceutical sector, Commerce Minister Kamal Nath told reporters here.

The assurance on buying missions was given to Nath by his counterpart Chen Deming during a meeting on the sidelines of Prime Minister Manmohan Singh's three-day visit.

During the parleys, Nath expressed concern over the growing trade deficit and raised many issues that were restricting Indian exports to the communist giant.

"Mr Chen clearly recognised that such a large trade imbalance is not desirable and sustainable. He offered to send buying missions to India frequently to promote a more diversified basket of exports from India to China," Nathsaid he had requested CII and the FICCI to host these promised missions and find suitable niche areas where India had core competency with globally competitive edge.

The Indian concerns arise from the fact that the current bilateral trade that stood at over USD 38 billion and the trade deficit was significantly in favour of China.

India has told China there was no China-specific restrictions on investments in India due to security concerns.

Nath also took up with his counterpart many issues related to Indian businesses' access to Chinese market.

Beijing's restraining policy on export of coking coal to India for the steel industry was specifically raised.

The huge cess on coking coal and hiking of the price for Indian buyers was also raised. There was no such cess in 2005 and today it was as high as 25 per cent.

It was pointed out that India was supplying iron ore to China at an export duty realisation of only one per cent.

"We lowered this duty at their request and it is now for the Chinese side to reciprocate in the area of coking coal. Our steel industry is asking for a 40 per cent allocation of coking coal exports for India as China had done for the EU sometime earlier," he said.

On diversification of Indian export basket, Nath said India had permission for export of only three from the agreed list of 17 fruits and vegetables and hoped that Chinese government would expedite the issues of quarantine and other required permissions to allow more exports to China.