Worried over widening trade deficit with China which is expected to cross $ 40 billion this fiscal, the commerce ministry is in the process of preparing an export strategy identifying specific products to boost outbound shipments to the neighbouring country.
"The trade deficit with China is increasing at an alarming rate. Till now it has touched $ 32 billion and may cross $40 billion by end of this fiscal," an official told news agency.
In order to bridge this, the commerce ministry is formulating the strategy under which it has identified specific products including textiles, auto components, pharmaceuticals, buffalo meat, marine products, rice and other agri produces.
"These sectors have huge potential in the Chinese market. Exports of the products would help in bridging the deficit by around $10 billion in a year. In these sectors, domestic players have good cost advantage," the official added.
The paper has also highlighted problems being faced by Indian exporters in these segments such as regulatory hurdles for pharma sector and sanitary and phyto-sanitary (related with plants and animals) issues for meat exports.