The widened trade deficit between India and China has always remained a matter of concern. An SBI report released in June had raised concerns on the fact that demand for Indian goods was on a decline in the Chinese market whereas India’s imports from China had risen, widening the trade deficit between the two countries. The report had suggested that India should try to tap sectors such as pharmaceuticals and agriculture — particularly in commodities like rice — in the Chinese market with an aim to bridge the widening trade gap.
Now with the recent move by China lower tariffs on and increase the imports of generic Indian drugs, India will be able to tap the massive Chinese market which demands the availability of cheaper medicines. China has recently opened its arms to the Indian pharmaceutical industry, agreeing to reduce tariffs on and increase imports of Indian medicines, especially anti-cancer drugs.