New Delhi: The India-China Business Alliance floated by Assocham in Shanghai and Shenzhen has resulted in 25 Chinese companies committing themselves to partner in the setting up of new projects in Knowledge Special Economic Zones, Biotechnology Incubators, established Hardware Technology parks and Telecom Equipment Manufacturing Facilities in India.
An MoU has been signed to this effect with the Shenzhen Computer Industry Association, Shenzhen Trade and Investment Association and Shenzhen Hitech Industrial Park.
About 10 Indian companies have already taken initiative for investing in Shenzhen particularly in R&D, biotech and software. Union Bank of India too coincided the opening of its branch with the delegations’s visit to Shanghai.
Bilateral trade between the two countries has crossed the $25 billion mark for the first time to reach $5.05 billion in 2006, representing an increase of 33.87% over same period last year. During this period, Indian exports to China increased to $10.46 billion while imports from China increased to $14.48 billion. As compared to rate of growth of Indian exports to China 7.05%, export from China to India increased by 63.23% over 2005.
China’s bilateral trade with India accounted for 1.47% of its global trade in year 2006, as compared to 1.32% in the same period of 2005. India is now the 13th largest export destination of China, while Indian ranks in the largest exporters to China has fallen to 18th.
On a monthly basis, total trade in Dec 2006 reached an all-time high of $2.66 billion while Chinese exports touched an all time monthly high of $1.66 billion, Indian export also broke $1 billion mark to touch $1.05 billion. India thus has a monthly trade deficit of $538 million.
According to the chamber’s findings, India and China are growing at a fast rate but interestingly their bilateral trade is growing at a faster rate in the world too. By 2025, India and China will jointly dominate the world trade completely and there may be a situation that an international company can only survive in the West if it can market to India-China block.