China has announced today that they have lifted duty fees on 28 medicines imported from India to China. This will come into effect from May 1 and will enable India to export their pharmaceutical products to neighboring nations with greater profit margins.
"China has exempted import tariffs (duties) for 28 drugs, including all cancer drugs, from May 1st. Good news for India's pharmaceutical industry and medicine export to China. I believe this will help reduce trade imbalance between China and India in the future," Chinese Ambassador to India Luo Zhaohui said in a tweet.
This latest development marks a breakthrough between the two nations that have been in conversation repeatedly with India pushing their agenda of greater market access in sectors like pharmaceuticals, IT, agriculture and many more.
Recently, the Indian delegation, in a meeting with their Chinese counterparts about Economic Relations, Science and Technology discussed the trade imbalance in great detail.
The trade deficit with China stood at USD 36.73 billion during April-October 2017-18. It was USD 51 billion in 2016-17.
The Chinese ambassador also made a promise to significantly reducethe time needed to open a business. He was quoted saying.
He also said that China would further improve business environment by halving time required to open a business. "China's door to the outside world will open wider. Indian businesses are welcome."
India too has sought investments from China. The neighboring country has agreed to set up an Industry Park in India to increase investments and bridge trade deficit.