The deputy chairman of Planning Commission, Montek Singh Ahluwalia, has showed his willingness to develop more liberal approach for trade relations between India and China. According to him, there should be a regional trade agreement with China to strengthen the border trade relations between both countries.
Ahluwalia is currently on the 2-day visit of China supports the Chinese demand for expanding the border trade at Nathu La Pass on Sikkim border. However, the government of India has applied a cautious approach on the number of items traded between the countries.
The government has decided to take a broader look on the nature of trade because a section of Indian industry has claimed that the low-priced Chinese goods would flood Indian market up if the border trade relations with China would take place.
Ahluwalia said that India has signed a regional trade agreement with ASEAN. There should be a multilaterally liberalising trade between India and China on the similar pattern. The whole world is going on the same track of trade relations.
On the question of low-priced Chinese goods in Indian market, he said that there is no need to fear because a lot of Chinese goods are already available in India. Indian He said further that both countries have the details that have to be worked out on both sides.