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

[ramu]

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

Wrong.

India should trade with China and it has to increase. Even if India has a trade deficit with China (which is bound to be as China is the manufacturing house of the world) we can reduce overall trade deficit. That implies we should export more than import to other countries and make for the trade deficit with China.

Also Chinese goods are sold at very attractive prices given the control on their currency. So it is a win win for India and China. However India should aim to increase its manufacturing GDP share from 15 % to 30 % and that is a huge challenge in itself. Manufacturing is where the jobs are and it is best to focus on it. Going forward as labour cost increases in China, the manufacturing will spill over and we can get a significant chunk of the manufacturing China is currently doing.

 

[Interpreter]

Wrong.

India should trade with China and it has to increase. Even if India has a trade deficit with China (which is bound to be as China is the manufacturing house of the world) we can reduce overall trade deficit. That implies we should export more than import to other countries and make for the trade deficit with China.

Also Chinese goods are sold at very attractive prices given the control on their currency. So it is a win win for India and China. However India should aim to increase its manufacturing GDP share from 15 % to 30 % and that is a huge challenge in itself. Manufacturing is where the jobs are and it is best to focus on it. Going forward as labour cost increases in China, the manufacturing will spill over and we can get a significant chunk of the manufacturing China is currently doing

The only sensible Indian in the only sensible thread I've ever met with in this forum.

 

[lepziboy]

I vote for more India and China trade.The future belongs to them.Time to counter america and don`t let them fight each other

 

[drunken-monke]

Excellent news for blostering the bilateral relations... But I have a concern. The market price of Chinese Products are quite less compared to domestic product hence the domestic industries find it hard to compete with Chinese product in the market. Hence this might kill the domestic Industries.

Someone commented about IT and Pharmaceuticals:

India is one of the best destination for IT buisness and we should convince China for outsourcing her business to India. About Pharmaceuticals, their own Pharma industry is huge mainly API and Raw material manufacturing. But surely if their FDA permits and grants approval, few of our medicine can be marketed in China. For us Chinese API and Raw materials comes at very cheap rate and thus reduces the manufacturing cost hence more profit. But the problem is their plant and API manufactureres have not got USFDA approval and MHRA approval (May be due to US VS China rivalary), hence the chemicals from china are benificial in domestic market, but not in regulated generic market.

Hoping for even more improved and better trade relation with China..
regards....

 

[Vibs]

Wrong.

India should trade with China and it has to increase. Even if India has a trade deficit with China (which is bound to be as China is the manufacturing house of the world) we can reduce overall trade deficit. That implies we should export more than import to other countries and make for the trade deficit with China.

Also Chinese goods are sold at very attractive prices given the control on their currency. So it is a win win for India and China. However India should aim to increase its manufacturing GDP share from 15 % to 30 % and that is a huge challenge in itself. Manufacturing is where the jobs are and it is best to focus on it. Going forward as labour cost increases in China, the manufacturing will spill over and we can get a significant chunk of the manufacturing China is currently doing.

That makes sense. People fail to realize that companies who want to protect their intellectual property end up setting up manufacturing units in India but to keep costs competitive have to import components from China. Our deficit with China may go up, but exports of these finished goods will significantly improve our Balance of trade with other countries in the world.

 

[Punjabbi Munda]

Chinese exports in 2010 = $1.5 trillion

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

don't you get bored??..i mean seriously??