India China agreed to set up Joint Working Group on Trade and Investments

India and China agreed to set up a joint working group (JWG) to look into issues related to trade and investments. The decision to set up the JWG was taken at the meeting of India-China Joint Group on Economic Relations, Trade, Science and Technology in New Delhi on 27 August 2012. Besides the two nations also agreed to adopt  a five-year plan on economic cooperation. The ministerial level meeting was attended by Indian Commerce Minister Anand Sharma and his Chinese counterpart Chen Deaming.

 The working group will submit its report within three months. The working group is set up even as India has expressed serious concerns over the widening trade deficit with its neighbour and sought a correction. On its part, China expressed serious concern over the imposition of duty on import of power equipment by New Delhi.

The total bilateral trade between India and China for 2011-12, stood at 75457.42 million dollar as compared with 59000.36 million dollar in 2010-11. During 2011-12, the exports were 17902.98 million dollar while the imports stood at 57554.44 million dollar. The provisional trade deficit for 2011-12 was 39651.46 million dollar.

The Joint Group on Economic Relations, Trade, Science & Technology was formed in 1988 when then Prime Minister Rajiv Gandhi visited Beijing.