If the last five year''s trend of over 30 per cent annual
growth in bilateral trade between India and China, China
will displace the US as India''s largest trading partner
in one year.
was stated by union commerce minister Kamal Nath in
New Delhi, while addressing the Confederation of Indian
Industry''s India-China Joint Business Forum. in New
said the annual bilateral trade between the two Asian
neighbours, currently estimated at around $18 billion,
is expected to reach $20 billion a year ahead of target
the present annual growth of over 30 per cent, which
in the last five years has even crossed 60 per cent,
continues, China may be our largest trading partner
in one year overtaking the US, with which our trade
is around $21 billion," said Kamal Nath.
Chinese counterpart Bo Xilai said, "If the present
trend of trade flow is maintained by 2010, the bilateral
trade could reach $50 billion."
Indian companies to invest in China, Chian''s minister
said, "There is a huge demand in the Chinese market.
Last year, there was 95 per cent increase in input (raw
materials) from India." Indian investments currently
constituted barely one per cent of the foreign direct
investment flow into China.
that by 2010, the domestic market in China would be
one of the biggest with the savings of residents expected
to soar from current levels of $1.7 trillion to over
$4 trillion, Bo said Indian companies should look more
closely at the Chinese market for supply of luxury and
boost investment flow, India and China today signed
a draft agreement on investment protection and promotion,
which would provide the legal basis to encourage the
flow of investments. Bo Xiao is leading a 82-strong
delegation to India comprising 40 officials and 42 business
representatives to attend the India-China Joint Economic
Group meeting being held after six years.
are keen that developing countries have a bigger share
of the Chinese market," he said. He said the Canton
Trade Fair, which completes a century this year, would
provide a good platform for Indian companies to showcase
their products and services.
up the mechanism to remove trade and investment hurdles,
the two countries have decided to constitute six task
forces to study issues like harmonisation of standards
for products, non-tariff trade barriers, rules of origin
of products and raw materials and consultations on WTO