The Hindu Business Line : India-China trade scales new heights in first half

Getting closer: The Chinese Foreign Minister, Mr Yang Jiechi, calling on the External Affairs Minister, Mr Pranab Mukherjee, in the Capital on Monday. A delegation from China's Foreign Trade Department is currently visiting New Delhi to promote Indian participation in the 104th edition of the Canton Fair beginning October 15. -- Ramesh Sharma

Our Bureau

New Delhi, Sept. 8 Sino-Indian bilateral trade continues to grow by leaps and bounds, with the trade value in the first half of calendar year 2008 hitting the $ 29-billion mark, recording a 69 per cent jump over the corresponding period last year, a top Chinese Commerce Ministry official said here on Monday.

According to Mr Liang Shu He, Deputy Director-General of Foreign Trade Department in the Commerce Ministry of China, India and China were on course to raise their bilateral trade to $ 60 billion by 2010, which was the target set by the Prime Ministers of both the countries in 2005.

Bilateral trade in calendar year 2007 stood at $ 38.65 billion, registering an increase of 56 per cent over the previous year.

A delegation from China’s foreign trade department is currently visiting New Delhi to promote Indian participation in the 104th edition of the Canton Fair beginning October 15. The Federation of Indian Export Organisations (FIEO) has been appointed as an agent in India for the fair.

Trade deficit rising

Although the bilateral trade may be scaling new heights with each passing year, the notable factor that is a matter of concern for the Indian side is the rising trade deficit each year. The country’s trade deficit with China rose from the level of $ 816 million in 2002-03 to $ 9,159 million in 2006-07.

“China continues to maintain trade surplus even under increased bilateral trade. Restrictions on export of iron ore from India have widened the trade gap. Our estimate (going by Chinese data) is that trade gap could be about $ 10 billion in the first half this calendar year. India’s exports to China would be about $ 9 billion and imports from China could be about $ 19 billion in this period”, Mr Ajai Sahai, Director-General of FIEO told Business Line.