MAMALLAPURAM, India (Reuters) - India and China will set up a mechanism to tackle India’s galloping trade deficit with the world’s second-biggest economy, a top Indian diplomat said on Saturday, following summit talks between Prime Minister Narendra Modi and President Xi Jinping.
Xi, who is visiting India, and Modi held several hours of one-on-one talks in a southern seaside Indian town, during which they discussed a range of economic issues, including India’s $53 billion trade deficit with China in 2018/19, and ways to tackle it.
Indian Foreign Secretary Vijay Gokhale said at a press briefing that the deficit was a concern for India and the Chinese side was willing to address it. Xi welcomed Indian investment in pharmaceuticals and textiles, he added.
Reporting by Sanjeev Miglani in MAMALLAPURAM; Additional reporting by Zeba Siddiqui; Editing by Shri Navaratnam