Trade with China set to cross $10 billion

The bilateral trade between India and China is set to cross $10 billion dollar this year with China replacing Japan as India's number one trade partner in northeast Asia.

"We should maintain trade growth rate and focus more on areas like tourism, healthcare, textiles, technology - hardware and software and manufacturing, " E V K S Elangovan, Minister of State for Commerce and Industry said at a Confederation of Indian Industry (CII) business conclave on Tuesday.

Elangovan added that the present level of trade between the two nations was not commensurate with the existing potential.

Meanwhile, Chinese delegates expressed concerns over the favourable terms of trade in favour of India.

"At present, Indo-China trade is in favour of India at $ 1.7 billion which is natural. This imbalance will straighten in next few years," Wang Jinzhen, assistant chairman of China Council for Promotion of International Trade (CUPID) said.

"This year, Sino-Indian trade has shown a stronger growth momentum with the trade volume reaching $6.67 billion in the first six months of the year, an increase of 93.1 per cent over the same period last year," Sao Qiwei, leader of the Chinese delegation said.

Meanwhile, three memorandum of understandings (MoU) were signed between the two nations.

The first MoU was between Mumbai-based Dossa Chemicals and Yunnan Malong industry group whereby the former would import at least 8,000 tonnes of phosphorous and phosphorous-based products from China per annum.

The second MoU was between Central Silk Board and Yunnan Mengzi Meiyu Silk where a reeling facility will be set up in Karnataka with an annual capacity of 60 tonne at an investment of Rs 80 crore.

"The new facility will produce yarn of international standard and will to some extent help meet the domestic requirement," Central Silk Board CEO P Joy Oommen said. The silk board would facilitate setting up of the plant.

The third agreement was signed between CII and CCPIT to renew the existing relationship with regard to promoting bilateral trade between the two countries.