India expresses concern over widening trade gap with Australia

Seeking greater access for Indian IT, pharmaceutical and fruits in the Australian market, external affairs minister SM Krishna today expressed concern over the burgeoning trade imbalance between the two countries.

Krishna noted that "the trade imbalance with Australia was the second largest that India had with any of its trading partners," a joint statement on the India-Australia foreign ministers' framework dialogue said.

In 2009-10, India's exports to Australia stood at just US$1.38 billion, while imports amounted to a whopping US$12.4 billion, translating into a trade deficit of about US$11 billion for New Delhi.

Krishna "urged greater flexibility and requested for early action on issues that impacted India's exports to Australia, especially in service exports (IT) and products such as pharmaceuticals, mangoes and table grapes," it said.

However, Australian foreign affairs minister Kevin Rudd said Australia has an open market and welcomed Indian trade and investment, it said.

Rudd said his country is looking forward to host the next joint ministerial commission on trade and economic issues. Further, the statement said that both the ministers noted the importance of cooperation in the resources and energy sector.

While India is Australia's third largest export market and fifth largest trade partner, Australia is India's sixth largest trading partner.