The Hindu : India-China trade on a high

Online edition of India's National Newspaper
Saturday, Apr 03, 2004

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India-China trade on a high

By Amit Baruah

NEW DELHI, APRIL. 2. Trade between India and China will exceed $10 billion for the first time this year if the trend set in the first two months of 2004 continues, India's Ambassador to China, Nalin Surie, said today. He told a CII function that an India-China trade turnover of $20 billion by 2010 was an achievable target. Five per cent of India's total exports was going to China.

He saw no contradiction between India's democratic system and China's party-led Government. Admitting that India's exports to China were dominated by iron-ore and steel (currently accounting for 50 to 60 per cent of India's exports), he said it was for industry to expand the list of exports.

He said it was necessary for Indian companies to break into the Chinese software market. China was getting its act together on the software front and would emerge as a competitor to India. He identified services, pharmaceuticals, auto components, agricultural products, dairy products and the health sector as some of the areas on which Indian companies could focus attention.

While pointing to increasing visits by Indian and Chinese business delegations, Mr. Surie felt the focus had to be on business opportunities and follow-up to these visits. The CII, he said, would be organising yet another business exposition in China this year.

Promising facilitation to company representatives present at the CII meeting, the Ambassador revealed that the leading Indian industrialist, Ratan Tata, had recently visited China. Mr. Surie, however, said doing business in China was not easy. Doors opened easily to large investors, but not to small ones. A bilateral investment protection mechanism would be in place sooner than later between the Indian and Chinese Governments, he said.

The Chinese market was "wide open" while the Indian market was opening up in line with World Trade Organisation requirements, he said.

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