Indian Merchandise Exports to China

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Indian Merchandise Exports to China is another important segment of the total export of Indian products to china. The export items concentrated on primary products, however there lies a great potential for export of other value added and knowledge based items from India to china. The bilateral trade is under the regulation of the India china JBC.

Major items of Indian Merchandise Exports to China:
The primary products that comprise the Indian Merchandise Exports to China are like iron ores, slag and ash, iron and steel, plastics, organic chemicals, and cotton. However at present, Iron ore constitutes about 53% of the total Indian Merchandise Exports to China. The other merchandise items that has potentials are like the auto & auto components, electronic components, drugs & pharmaceuticals, metal & metal based products like alloy steel bars and rods, engineering machinery like diesel engines and compressors, textile yarns & fabrics, agricultural products like salt, grain, tobacco, and oilseeds, minerals & mineral products, fresh and processed fruits, vegetables, marine products, dairy products, medical equipment, and construction material. Such diversification of Indian Merchandise Exports to China clearly indicates that there exists a steady demand for these products in the Chinese market.

Impediments regarding the Indian Merchandise Exports to China: However there exists certain hindrances regarding the enhancement of the Indian Merchandise Exports to China like lack of informations on custom procedure in China as the language acts like a principal barrier, imposition of excessive customs and other levies with frequent rate changes, customs valuation procedure being complex, in absence of a specified central agency getting complete informations on rules and regulations is difficult, lack of transparency regarding technical standards, differentiated testing norms for imported and domestic products, and certain legal and regulatory problems within Chinese economy.

Steps for enhancing Indian Merchandise Exports to China:
In order to increase the levels of Indian Merchandise Exports to China, some steps are taken by the government as well as the respective industrial houses. Some of them are like to set up a joint council between the governments of two countries to resolve problems, to set up offices of trade promotion bodies in Shanghai & Beijing, to strengthen direct transportation links such as those facilitating the shipping, increasing frequency of the flights from India to important cities of China, to lent support industry in order to exhibit India in China through frequent industrial meets and exhibitions in different provinces, to encourage public sector banks to start their banking services in major cities of China in order to cater Indian businesses, and also initiate a separate export promotion scheme for China.