Friday, November 4, 2011
India, China on course to achieve $100 billion bilateral trade by 2015
Asserting that India-China trade relationship was on the upward swing, Union Minister for Commerce, Industry and Textiles Anand Sharma on Thursday said both nations were on the course to achieve the bilateral trade target of $100 billion by 2015.
Mr. Sharma also announced that a Chinese company, in collaboration with Indian partners, would pump in Rs.2,500 crore in green energy. These issues came up for discussion during Mr. Sharma's meeting with visiting Governor of Xinjiang Province of China Nur Bekri here.
Massive trade deficit
Mr. Sharma said trade between India and China had seen exponential growth in the last few years. According to trade statistics of the Directorate General of Commercial Intelligence and Statistics, the total trade volume had gone up from $2.3 billion in 2000-01 to $59.62 billion in 2010-11.
However, Mr. Sharma raised the issue of India's concern over the massive trade deficit. The trade deficit for the Indian side had increased from $9.1 billion in 2006-07 to $20.8 billion in 2010-11.
“A balanced trade is needed for long-term, sustainable and harmonious development of economic cooperation between the two countries.
The area of drugs and pharmaceuticals is an important segment of our efforts to diversify our bilateral trade basket. Both sides need to work aggressively towards removing administrative bottlenecks and overly restrictive regulatory measures, in order to boost development of all round cooperation in this area,'' he remarked.
Mr. Sharma also highlighted renewable energy, where the Chinese Government had fixed a target of 100 GW by 2020, as another area with great potential for export from the Indian side. Both leaders agreed that an Indian delegation should visit the Xinjiang province for exploring the possibilities of promoting Indian products in handicrafts, handloom and films.
A memorandum of understanding was signed between the Gujarat Government and TBEA (India) Pvt. Ltd. TBEA Energy (India) Pvt. Ltd. proposes a foreign direct investment of Rs.500 crore in the first phase of a three-phase ‘TBEA Green Energy Park' project with a projected total investment of Rs.2,500 crore.
Later, speaking at a business session, organised by the Confederation of Indian Industry (CII), Mr. Bekri called for building trade and investment relationship between India and Xinjiang. At present bilateral trade between India and Xinjiang is worth only $35 million, even as China has become the largest trading partner of India.
Mr. Bekri said that with extensive economic reforms in the last three decades, Xinjiang had developed greatly and now offered huge business and investment opportunities in sectors such as oil and gas, mining, agriculture, tourism, IT, pharmaceutical and biotechnology.
He also called for strengthening cultural exchanges between India and Xinjiang to build people-to-people relationship. Xinjiang has rapidly developing trade with central Asian countries, Russia and other bordering countries. Mr. Bekri is now on an official visit to India at the invitation of the Indian Government with a 19-member delegation of officials and leading business people from Xinjiang.
Chinese firm to invest Rs.2,500 cr in green energy project