India's Finance Minister Nirmala Sitharaman has sharply criticized China's trade practices, likening the difference in market access between the two nations to playing distinct sports. Speaking at the Pondy Lit Fest 2026, Sitharaman stated, "We are playing hockey, they are playing football," emphasizing that India and China do not compete on equal terms in the global market.
Indirect Trade Due to Market Access Issues
Sitharaman's comments were made in response to concerns about India's growing trade deficit with China. She explained that official trade figures often do not reflect the full picture, as many Indian goods destined for China must first pass through intermediary countries like Vietnam due to direct market access denials.
"Our export account would say that we are still not adequately exporting to China, but actually it is going to China," Sitharaman revealed. She cited examples such as buffalo meat and generic pharmaceutical drugs, both bulk goods that China procures from India indirectly, often via third countries. This practice, she argued, artificially inflates India's exports to other nations while obscuring actual trade with China.
China's Restrictive Practices
The Finance Minister highlighted specific instances where China's authorities impede market entry for Indian products. She recalled unsuccessful efforts since 2014 to secure direct market access for Indian generic drugs in Chinese provinces, despite India being a global leader in their production. "It didn't move an inch," she noted regarding negotiations with Chinese authorities.
Sitharaman contrasted this with India's open economic policy, where consumer demand drives market entry for imported products. In India, "the consumer sets the requirement," she said, allowing foreign goods to compete if they are competitive in price and quality. Conversely, in China, "the authority sets the requirement and doesn't allow you to go in," even if consumers desire the product.
Investment and Exit Restrictions
Beyond trade, Sitharaman also pointed to China's stringent investment and exit restrictions as another element of its uneven system. She mentioned a law that reportedly restricts individuals and companies from withdrawing investments or technology from China without government permission. "You may be a Chinese national or you may be anybody else. Anyone getting out from there now will have to seek permission," she stated.
This contrasts sharply with India's efforts to attract foreign investment, where the focus is on creating a friendly environment without imposing barriers on capital or personnel movement. Sitharaman questioned why the international community often applies the same expectations to India and China, despite these fundamental differences in their economic systems.