The Hindu Business Line : Bilateral trade with China may touch $10 b this year

INDIA-China bilateral trade is expected to touch $10 billion by this year-end, from $7.9 billion achieved in 2003, and tremendous opportunities exist in not just enhancing bilateral trade, but also for exploring investment opportunities, joint ventures and strategic partnerships in China.

Speaking at an interactive session on `Enhancing engineering exports to China, 2004-05', organised by the Confederation of Indian Industry, Eastern Region, in collaboration with the Department of Commerce, here, Mr Sanjay Budhia, Chairman, National Committee on Exports, CII, said in a bid to enhance India-China business prospects further, the confederation is organising an India-China conclave here on August 6, which will host a 60-member contingent from China.

He told Business Line that the conclave was expected to help identify sectors of mutual interest, sector-province identification and match-making, work on a road map, catalyse B2B partnerships and leverage on Indian industry's strengths in China.

Describing the day's session, which saw two major "doing business with China" presentations by Tata International and Nalco, as a run-up to the business conclave, Mr Budhia said corporates around the world, especially those in manufacturing, regard China as a base for churning out products in large numbers at low cost, to gain a competitive edge.

Describing China as a factory for the world, with a huge workforce willing to work at competitive wages, a large domestic market and a global export base, he said strategies are being worked out to counter the Chinese march by nations around the world.

Exporters admittedly are lured by the vast Chinese market and the huge demand for products and intermediates.

He said while domestic producers regard China as a source for cheap raw materials and intermediate products, the same companies find China a force to reckon with when selling the finished product-lines. China is driving prices down, and domestic companies finding themselves unable to compete on prices are forced to reduce margins.

Pointing out that the Indian industry has now become more competitive, Mr Budhia said there is much to learn from how the companies have survived the Chinese onslaught and how they have engaged the Chinese business and economic strengths to benefit their own businesses.

Citing the new initiatives of CII to bring about greater awareness about China among members of the Indian business community, he said some Indian corporates such as Tata International and Indian Aluminium Company Ltd, have already achieved success in China, and their experience would provide a valuable learning curve to many others keen on doing business with China.

The presentations were made by Mr Sanib Nanda, Chief Sales Manager, Tata International Ltd and Mr Benoy Chatterjee, Senior Manager-Exports, Indal.