India-China Trade to Touch $100 Bn in 4 Yrs

[SpArK]

India-China Trade to Touch $100 Bn in 4 Yrs: Assocham

India-China trade would touch USD 100 billion in the next four years from the present USD 63 billion, says industry body Assocham.

As per the Associated Chambers of Commerce and Industry of India, the two Asian giants can emerge as world's largest trading partners by 2030.

"China has already raced past United States, Britain and Japan to become India's largest trading partner. Indian companies can gain substantially by accessing Chinese capital goods at attractive prices by way of imports," Assocham said in a statement here.

Indian exports to China jumped 68.8 per cent to USD 19.6 billion in 2010-11, from USD 11.6 billion in the previous year. Imports increased 41 per cent to USD 43.5 billion from USD 30.8 billion in the same period.

India is the tenth largest trade partner of China, and its seventh largest export market. In India's total trade, China's share has increased to over 10 per cent.

However, Assocham expects that government's proposal to hike tariff and non-tariff barriers on imports of some Chinese goods or to impose a complete ban on items like power and telecom equipment will send negative signals to India's trade partners and affect investment climate in key sectors.

"Economic relations between India and China are among the most significant in current global economic scenario," Assocham Secretary General D S Rawat said in the statement, adding that the trade gap must come down.

"Indian companies must widen product portfolio to increase exports of finished, value-added products," he said.

India and China entered a trade agreement in 1984, granting each other the status of Most Favoured Nation (MFN).

"There are complementarities as India has excelled in services sector, especially in knowledge-based services, while manufacturing has emerged as mainstay of Chinese economy," Rawat said.

Indian exports to China mainly consist of metals, ores, iron and steel and cotton, while imports are electrical machinery and equipment, nuclear reactors and boilers, organic chemicals, fertilisers, iron and steel.
FILED ON: NOV 07, 2011

news.outlookindia.com | India-China Trade to Touch $100 Bn in 4 Yrs: Assocham

 

[IndoCarib]

Instead of increasing trade, we should work towards reducing trade deficit with China

 

[Alchemy]

Increasing trade with China will play a big role in ensuring that both countries will be friendly towards each others ! Pakistan is finally realizing this by granting India MFN .... for both Ind-pak and Ind-China relations, maintaining status quo in terms of boundary and other dispute where as increase people to people contact, increase trade and other CBMs are the way to go !

 

[ChinaToday]

Instead of increasing trade, we should work towards reducing trade deficit with China

If you want to become the third biggest economy in the world China is the only country that can get you there faster.

 

[tony singh]

If you want to become the third biggest economy in the world China is the only country that can get you there faster.

Dont forget Japan also they helping us in big way now

 

[ChinaToday]

Dont forget Japan also they helping us in big way now

Japan market is not as big as china

 

[tony singh]

Japan market is not as big as china

True but they helping us in other ways like manufacturing but China needs to let us sell IT and Pharmaceuticals otherwise there will be huge trade deficit which will be unfair.

 

[guest11]

Trade and cultural exchanges are the only viable options for calming the trigger happy people on both sides of the border. Hopefully, the sanity will prevail.

 

[LetsGetRowdy]

True but they helping us in other ways like manufacturing but China needs to let us sell IT and Pharmaceuticals otherwise there will be huge trade deficit which will be unfair.

we are better at it, so no need to get it from india. there is very little india has to offer to china.

 

[Sasquatch]

Good we should get to $200 billion in the next 8 years.

 

[lepziboy]

we are better at it, so no need to get it from india. there is very little india has to offer to china.

what can you offer?

 

[Mike2011]

We don't need anymore chinese junk..

 

[Chinese-Dragon]

We don't need anymore chinese junk..

Chinese exports in 2010 = $1.5 trillion

Our "Chinese junk" was worth more as exports, than India's ENTIRE GDP for the same year.

 

[Lankan Ranger]

India & China to be world’s largest trading partners by 2030

China has already raced past the United States, Britain and Japan to become India’s largest trading partner.

India and China can emerge as the world’s largest trading partners by 2030 with bilateral trade set to rise from 63 billion dollars now to 100 billion dollars in the next four years, industry body ASSOCHAM said today.

China has already raced past the United States, Britain and Japan to become India’s largest trading partner. Indian companies can gain substantially by accessing Chinese capital goods at attractive prices by way of imports, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Indian exports to China jumped 68.8 per cent to 19.6 billion dollars in 2010-11 from 11.6 billion dollars in the previous year. The imports also increased 41 per cent to 43.5 billion dollars from 30.8 billion dollars in the same period.

“Economic relations between India and China are among the most significant in current global economic scenario,” said ASSOCHAM secretary general D.S. Rawat. However, the trade gap must come down. Indian companies must scale up operations and widen their product portfolio to increase exports of finished, value-added products.

Several Indian firms – mostly in pharmaceuticals, information technology and IT enabled services sectors – have got a strong footing in China.

Both countries entered into a trade agreement in 1984 which granted them the status of Most Favoured Nation (MFN). Ten years later, they signed the Double Taxation Avoidance Agreement (DTAA).

In 2003, the Bangkok Agreement was signed under which India provided concessions on 188 products exported to China. On the other hand, China provided preferences on tariff for 217 products exported from India.

“There are complementarities as India has excelled in services sector – especially in knowledge-based services – while manufacturing has emerged as the mainstay of Chinese economy,” said Mr Rawat.

India, China to be world

 

[Skull and Bones]

I'm in favor in increasing trade in China, but at the same time we need to ensure that competitive Chinese pricing doesn't kill our domestic manufacturers.