Anil Sasi
Neha Kaushik

India overtakes Brazil and Australia to emerge as the largest supplier of ores, slag and ash to China. Plastics and polymers exports up 224 per cent in five years.

New Delhi , Sept. 25

WHILE China transforms itself into a factory for the rest of the world, India seems to be emerging as the supplier of choice in several product categories for the Chinese manufacturing juggernaut.

Many Indian products, mainly raw material and semi-processed goods, have made major inroads into the Chinese market in recent times.

For instance, in the case of ores, slag, and ash, India overtook Brazil and Australia last year to emerge as the largest supplier to China, with exports topping $4 billion.

While the overall Chinese imports of these items have grown at around 50 per cent a year between 1999 and 2004, imports from India have skyrocketed over 75 per cent annually during the period.

Iron ore exports dominate: According to DGCI&S data, Indian suppliers dominate the Chinese import market for iron ore.

Indian iron ore suppliers have established a lead in Chinese imports, with a market share of 32 per cent last year. Australia was second with a market share of around 24 per cent.With the upcoming Beijing Olympics fuelling a construction boom in China, the demand for Indian ore and iron and steel is expected to gain steam in the next couple of years.

In the case of the plastics and polymers, Indian exports to China grew by 224 per cent annually, up from $7.7 million in 1999 to $262.1 million in 2002. By 2004, the value of imports had touched $408.1 million. China has now emerged as the largest market for Indian plastic products, displacing the US.

Big demand for cotton: India's cotton exports to China witnessed a year-on-year growth of 89 per cent in 2004, clocking the fastest growth after the US, which tops the list of cotton exporters to China.

Indian exports to China were largely fuelled by the high demand from Chinese textile manufacturers following the quota phase-out earlier this year. While cotton yarn has been the mainstay in India's cotton exports to China, last year saw a spurt in raw cotton as well.

Exports of products in some other categories to China have witnessed sharp increases during the last couple of years.

For instance, export of organic chemicals from India to China grew nearly 40 per cent a year, against 34 per cent increase in Chinese imports in the category.

Other areas where Indian exporters have made inroads are marine products, organic and inorganic chemicals, aluminium, and pharma products.

With China's annual imports poised to cross $100 billion in the next few years, analysts said that there is tremendous opportunity for Indian exports.

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