China and India on Friday held their 8th high-level Financial and Economic Dialogue here to strengthen trade and economic cooperation, with the two fast-developing nations underlining the need of building more solidarity to adopt more responsible macro economic policies.
Secretary Economic Affairs, Shaktikanta Das accompanied by a delegation of officials from the RBI and Finance Ministry took part in the annual Dialogue along with the Chinese delegation led by Vice Minister for Finance Shi Yaobin.
“India is working hard to unify the domestic market, improve infrastructure, speed up manufacturing sector development, encourage more Foreign Direct Investment (FDI),” Shi said in his opening remarks at the meeting.
“We are happy to hear that in early August India’s GST (Goods and Services Tax) reform has achieved historical breakthrough. In such kind of background we need to learn more from each other to coordinate micro economic policies, face more challenges and create more drivers for our development,” he said.
The dialogue mechanism is aimed at exchanging ideas and status reports on the macro economic situation in both the countries in which officials of both the countries brief each other about their economic and fiscal policies and discuss issues of structural reforms and bilateral investment flows and economic cooperation.
This year’s dialogue is being held ahead of the G20 summit to be held in Chinese city of Hangzhou next month followed by BRICS, (Brazil, Russia, India, China, South Africa) summits in Goa in October which would focus mainly global on economic slowdown and initiatives to spur growth.
In his address, Das said, “Bilateral relations between India and China have witnessed all round progress in recent years”.
“This is a significant development and demonstrates the priority being attached by the two countries to our bilateral economic relations,” he said.
“The annual dialogue is an important forum that enables us to revisit the entire range of bilateral relations and strengthen various areas of economic cooperation,” he said.
He said during today’s talks the Indian side will highlight steps for further cooperation between the two countries with regard to trade, investment flows and participation of both Indian and Chinese companies in each there economic development besides structural reforms and cooperation between the countries in multilateral forums like G20 and BRICS.
Das said institutions like the G20 and BRICS have come to play greater role in evolving global and regional consensus on important key issue affecting global economy.
“I see a very good opportunity for a coordinated action between India and China. From the Indian side we will also be highlighting the possibilities of further cooperation with regard to trade and investment flows,” he said.
He also said India is happy to note that China which holds the Presidency of the G20 has given greater focus on inclusiveness in the G20 summit agenda.
“It is very important to point out that the idea of inclusiveness has been retained and has been given greater focus in G20 agenda under Chinese Presidency,” he said.
“Very rightly and timely manner the Chinese Presidency is also giving importance to new industrial revolution on innovation as main drivers of economic growth in the current century,” he said.
The world is at a critical stage and innovation and the new industrial revolution will be the key drivers to give extra momentum for the growth of the world economy.
“May I reiterate we in India attach high priority to the bilateral relations with China. We are confident to strength modalities of cooperation in major facets of economic and bilateral relationship,” he said.
Shi said emerging market economies like India, China face greater pressure today.
“In Global community, we keep hearing bad mouthing of emerging economies here and there,” he said.
“So as two important emerging economies, China and India need to build more solidarity, air common voice, urge developed countries to adopt more responsible macro economic policies and lay foundation and enabling environment for global economic recovery,” he said.
He said both the counties should adopt more pragmatic and open approach to explore more areas bilateral, fiscal and financial cooperation.
“Our combined population is over 40 per cent of global population. In 2015 total GDP of the two countries occupy 18.5 per cent of the global GDP. We are enjoying great market and development potential however by the end of 2015 our bilateral trade reached only USD 71.62 billion and China’s investment in India is about USD 4.07 billion.
“India’s investment in China is only USD 650 million. This data could hardly match good relations and potential and state of economies,” he said.
Shi said China is working hard to scale up infrastructure investment though its Silk Road intuitive which is called One Belt and One Road (OBOR).
The Bangladesh, China, India, Myanmar (BCIM) which is part of the OBOR will provide great opportunity for China and India’s economies to take off, he said.
“With unprecedented economic opportunities, relevant departments should seize the opportunity to deliver common consensus of two countries by adopting bold and innovate approach to overcome the fiscal, financial as well as investment impediments to achieve higher, better economic trade and investment collaboration,” he said.