ICRIER Chairman says India should look east, increase trade with China

The Indian Council for Research on International Economic Relations (ICRIER) has said that India should look east as well as west and increase trade with fellow Asian countries, including China.

Stressing the need for all Asian countries to create jobs at the grassroots level by using technology and trade, ICRIER President Pramod Bhasin expressed hope of opening up more trade with China after the visit of Prime Minister Narendra Modi and subsequent ministerial discussions.

Bhasin said various methods could be explored to reach the larger Chinese market, adding that increased trade with China could allow entry of useful technology to advance India’s processes and productivity.

Although he expressed hope for a trade deal between India and the US, he indicated that the US keeps changing its mind and even once a trade deal is reached, he expects it to remain “intact and sustained”.

Read more: India discusses social security pact with Romania, opportunity for 30,000 skilled workers

Claiming that India’s trade with Southeast Asia has never reached its full potential due to its focus on European and American markets, he said that “Indians are brilliant entrepreneurs”, and “should not underestimate how well we will adapt to be able to sell to China.”

On Press Note 3, which is India’s policy examining foreign direct investment (FDI), as well as India’s decision not to join the China-led Regional Comprehensive Economic Partnership (RCEP), he expressed hope that “some of those stands will also be reconsidered”.

“We should go back and see whether we should become a member of RCEP or not,” Bhasin said.

He further pointed out that India and China are huge markets for each other, adding that increased trade can only help drive economic growth, adding that bilateral arrangements with many countries will take more time, while “geopolitical issues are very relevant”.