Chinese Exports to India

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Chinese exports to India focuses on resource based exports as well as the exports of manufactured products. China has emerged as a global manufacturing center and India as the most lucrative market in the world.

In 2004, the Chinese exports to India stood at US$ 5926.67 million. However, it industrialists in India were not in favor of China being given free access to the domestic markets. But bilateral trade relations between India and China have increased over the years, reaching US$18.7 billion in 2005 from US$ 4.8 billion in 2002. However, the bilateral trade is to be increased further to US$ 20 billion by 2008 and further to US$30 billion by 2010.

Items of Chinese Exports to India

The main items to be exported from China to India are electrical machinery and equipment, organic chemicals, nuclear reactors, boilers, machinery, silk, mineral fuels, and oils. Value added items also dominate Chinese exports to India, like machinery, specially electrical machinery, which forms about 36% of Chinese exports to India.

Recent developments regarding Chinese Exports to India

  • In the beginning, Chinese firms were keen on exporting cheap electronic items, garments, and toys to the Indian markets. But recently, Chinese exporters have been focusing on the cement market. Two Chinese cement companies, Yingde Dragon Mountain Cement company Ltd. and Longkou Fanlin Cement Company have been authorized to sell cement in Indian market. The reasons behind the sudden interest of the Chinese cement companies in penetrating the Indian market are that China is the world's largest cement producer and that the per capita cement consumption is relatively low in India - around 150 kilogram per annum, less than one-third of China's per capita consumption, as in 2006. An Ahmadabad-based textile company is acting as the local agent of the Chinese firms in India.
  • The prospects for Chinese exports to India have been enhanced from 2006, with the opening of the prospective Indo China border trade. Trade has been initiated between Tibet, an autonomous region of China, and India through Nathu La Pass, reopened after 44 years. From then onwards, nearly 15 items are being exported from China to India.