India China trade relations are the most important part of
bilateral relations between India and China. From a temporary decline in the the influx of
Chinese imports in the Indian markets, the scenario seems to have changed – India is enjoying a positive balance of trade with China. The
India China trade relations are regulated by the
India China JBC, which ensures a free exchange of products and services between the two nations.
India China Trade Relations: Overview
India & China signed a Trade Agreement in 1984 which provided for
Most Favored Nation Treatment and later in 1994, the two countries signed an agreement to avoid double taxation. The
bilateral trade crossed US$13.6 billion in 2004 from US$ 4.8 billion in 2002, reaching $18.7 billion in 2005. The
India China trade relations have been further developed from 2006, with the initiation of the border trade between Tibet, an autonomous region of China, and India through Nathu La Pass, reopened after more than 40 years. The leaders of both the countries have decided to enhance the
bilateral trade to US$ 20 billion by 2008 and further to US$ 30 billion by 2010. According to the Indian Commerce Minister, Kamal Nath, China would soon become India's largest trade partner within the next 2-3 years, after the US and Singapore.
Indian Exports to China under the India China Trade Relations
The principal items of
Indian exports to China are ores, slag and ash, iron and steel, plastics, organic chemicals, and cotton. In order to increase the extent of exporting
Indian goods to China, however, there should be a special emphasis on investments and trade in services and knowledge-based sectors. The other potential
items of trade between India and China are marine products, oil seeds, salt, inorganic chemicals, plastic, rubber, optical and medical equipment, and dairy products. Great potential also exists in areas like biotechnology, IT and ITES, health, education, tourism, and financial sector.
Chinese Exports to India under the India China Trade Relations
The main items that comprise
Chinese exports to India are electrical machinery and equipment, cement, organic chemicals, nuclear reactors, boilers, machinery, silk, mineral fuels, and oils. Value added items like electrical machinery dominates
Chinese exports to India. This exhibits that
Chinese exports to India are fairly diversified and includes resource-based products, manufactured items, and low and medium technology products. It is said that if India is to capture the markets of China and enjoy profits, then it would have to discover new merchandise and branch out its
exports to China.
To get further details on
India China Trade Relations and other related features, please search the following links:
Indian Exports to China
Chinese Exports to India
India China JBC
India China Tourism
Indian Agro Exports to China
Indian IT Exports to China
Potential of India China Border Trade
Indian Merchandise Exports to China
