India-China Trade All Set To Achieve $40 Billion

New Delhi: India and China are expected to achieve bilateral trade worth $40 billion much ahead of the official target of 2010, said Mr Yu Ping, Vice-Chairman, China Council for Promotion of International Trade at an India-China-Russia tripartite conference organised by FICCI and CII. Citing rising labour costs in the coastal regions of China and anti-dumping charges in various markets, he said many Chinese companies were scouting for newer markets for manufacturing and exports.

Exports from India to China include cotton, organic chemicals, iron, steel, inorganic chemicals; imports from China are highest in the category of electrical machinery and equipment, nuclear reactors and related machinery, organic chemicals, mineral fuels, oil and products. According to Export Import Bank data, India''s cotton exports to China rose from $514 million in 2005-06 to $750 million in 2006-07, organic chemicals from $460 million to $518 million in and inorganic chemicals and organic or inorganic precious metal compounds from $328 million to $351 million. China''s exports to India in electrical machinery and equipment rose from $2,773 million in 2005-06 to $4,241 million last year, nuclear reactors and machinery increased from $2,162 million to $3,249 million and organic chemical exports jumped from $1,310 million to $1,709 million.