The Hindu Business Line : `Wholesale, retail biz will be new areas for investment in China'

INDUSTRY bodies should highlight areas in which they have competitive strength to export to China. The absence of variety and value addition in Indian exports to China is of concern, according to Mr Vinay Kwatra, Counsellor (Economics and Commercial), Indian Embassy in Beijing.

Addressing a meeting of commercial representatives of India for North East Asia organised by the Federation of Indian Chambers of Commerce and Industry here, Mr Kwatra said that 58 per cent of India's exports to China consists of iron ore. But to maintain long-term trade, exporters will have to diversify the product range and focus on value-added goods.

He urged industry representatives to highlight more areas in which they have a competitive advantage for the Commerce Department to formulate a focussed strategy, as there is an effort to move away from the `trade query-based system' to a deeper study of Chinese imports to assess new areas that Indian exporters could exploit.

Some of the possible items include pharma, dairy, agriculture, fisheries and gem and jewellery. These sectors should also work on increasing their visibility in China along the lines of the information technology industry, he said.

The embassy in Beijing will soon launch an online directory of importers in China. With the Chinese Government set to throw open marketing to foreign investment, wholesale and retail business will be new areas for investment. Marketing offices located in Hong Kong and Singapore, with businesses in China, could shift to the mainland.

Mr Anup K. Thakur, Minister (Economic and Commerce), Embassy of India, Tokyo, said that Japan is looking at new destinations for its investments. With its FDI concentrated in China where it has about 355 billion yen in 2003, Japan does not want to put all its investments in one market. Japanese investors are increasingly attracted to India's potential and growth but they find the infrastructure gap a disincentive.