China welcomes Indian IT, pharmaceutical sectors

Chinese industry on Monday called upon their Indian counterparts to improve trade relations between the two countries, and underlined the urgent need to shift focus from primary exports to those of high value-added products. The two areas identified in this regard are software and pharmaceuticals.

The Chinese also urged that there should be mutual respect between the two countries and the doubts which exist in political circles should be done away with to improve bilateral relations.

Speaking at a conference on 'China - An India Opportunity', a spokesperson for the Chinese delegation said: "It's well know that India is among the world's leading software exporters, while China is building up this expertise. In this regard, we sincerely hope that we can establish a mutually-dependent and mutually-beneficial co-operation. We warmly welcome Indian IT talent to explore business opportunities in China and also aid this sector in China."

The delegation called for investment by Indian pharmaceutical companies in north, north-east, west and south-west China to supplement the efforts by the Chinese government to accelerate the development of these regions.

Co-operation, which has helped bilateral trade jump to $13.6 billion in 2004 from $7.6 billion in 2003, making China the second largest trading partner of India after USA, has further potential.

"With continued growth, China's consumption of raw materials to commodities and to finished products continues unabated. In addition, the focus on development of our interior and western parts also results in renewed demand," he highlighted.

Added Vijay R Kirloskar, past chairman, CII Southern Region: "Indian industry is doing well in increasing trade relations with China. Several of our well known companies are active in China. China holds out more potential for Indian industry and a stream of Indian businessmen visit China on a regular basis. India is on the radar screens of Chinese businessmen and we need to reinforce this."

According to CII, in view of the enhanced trade turnover, there was a possibility of China emerging as India's most important trading partner. But this could happen only if the rate at which bilateral trade with China increased. That would result from diversification of the trade basket, leading to qualitative shifts as well.