India-China trade volume surpasses USD 60 billion target

India-China trade volume surpasses USD 60 billion target

Officials here said the two countries were on course to meet the new target of USD 100 billion for 2015, set during Chinese Premier Wen Jiabao’s recent visit to New Delhi.
According to official preliminary figures released here, bilateral trade registered USD 1.7 billion more than the target mainly on strength of Indian imports.

Indian exports, mainly driven by cotton and iron ore to China amounted to USD 20.8 billion while Chinese exports to India totalled to USD 40.8 billion, virtually double that of India’s. The ever increasing buoyancy, however, is also cause of concern to India as the trade imbalance amounted to USD 20 billion, reflecting higher imports by India than exports.

Commenting on the new trade figures, K Nagraj Naidu, First Secretary, Economic and Commerce at the Indian Embassy said while bilateral economic trade ties were on
positive track, it is important for both the countries to realise greater cooperation.

"China has to understand the importance to provide market access to India specially Indian products like IT and Pharmaceuticals", he told PTI. India is keen awaiting China to open its markets for IT, Pharmaceuticals, Agro products and Engineering services, and President Wen during his visit to India last year said China would seriously address the trade gap.

According to Indian officials, majority of Indian exports included iron ore, cotton, yarn and cotton products, chemicals besides small machinery and pharma products. The growth of Indian exports was less compared to 2008 when Indian exports totalled to over USD 23 billion. The dip in Indian exports was mainly caused by drop in iron ore exports as China diversified to other countries finding market uncertain.

China’s exports to India on the other hand surged as the Country is cashing on the massive infrastructure modernisation currently under going in India. Telecom and power equipment constituted the bulk of the Chinese exports to India.