"India's approach towards Asian integration and its relations with Asia are increasingly an important element of our foreign policy. We are ready and committed to be an active and positive player in contributing to the cause of Asian integration," he said in his inaugural speech at the third 'Made in India' show organised by the Confederation of Indian Industry in Shanghai.
"We look forward to working with China towards these goals," he said while pointing out that India first propagated the idea and concept of an 'Asian Economic Community' in September 2003.
He stressed that Asia, especially India and China, seems posed to provide the thrust necessary for continued economic growth into the 21st century.
"India and China are two of the most important contributors to the political and economic dynamics of Asia, as also of the world," he said at the MII, held for the first time in the eastern metropolis to showcase India's manufacturing and technological prowess.
Chidambaram echoed CII president Y C Deveshwar's forecast that India-China bilateral trade, which has already crossed the $12.2 billion-mark during the first eight months of 2005, may even touch an all-time high of $20 billion by the end of the year.
India and China have economies that compete with each other, but there are also significant complementarities. "There is ample opportunity and space in the international economy for both our growing economies," the Finance Minister said.
"The presence of over 60 Indian trade and industry organisations at the third MII will contribute to the harnessing of business opportunities between India and China," he said while noting that New Delhi was quite satisfied from the positive momentum in bilateral trade and continued expansion and intensification of economic cooperation.
At the same time, he stressed that both countries need to examine closely the narrow trade composition of the trade basket and the insufficient use of each other's comparative advantages.
"For sustainable high volumes, diversification of the trade basket is not only important but imperative," he said while suggesting that India and China should look into areas like agriculture, dairy industry, food processing, auto components, pharmaceuticals, machine tools and information technology where they can mutually benefit.
The three consecutive MII shows in three years are a reflection of CII's interest and commitment to enhance trade and commercial relations with China," Deveshwar said.
The MII show is another effort by the CII to help attain the desired bilateral trade between the two countries and is expected to offer an important window for mutual synergies between Indian and Chinese businesses, Deveshwar, also chairman of ITC Group, said.
While predicting that both the people of India and China are facing a very bright future, Deveshwar noted that bilateral trade between the two nations was growing exponentially in recent years.
"If such high growth rates can be maintained, the target of achieving a bilateral trade value of $20 billion might be achieved this year itself," he noted.
An important highlight of the four-day show this time will be the Hydrocarbon theme pavilion, with participation from GAIL, ONGC, HPCL, BPCL, Oil India, Engineers India Ltd, IOCL, PCRA and Indian Oil technologies. The third MII also has two more theme pavilions- tourism and automotive sector.
The show will also witness the participation of a spectrum of the Indian industry with participation from the Indian corporate giants such as ITC, TATA, ACC, Mahindra & Mahindra and Sundaram Fasteners.
The small and medium enterprises representing auto components, food processing, gems and jewellery, pharma, bio-technology would also be present along with some of India's public sector enterprises.
In the services sector, the exhibition will see the presence of the banking sector with participation from the three leading nationalised banks - State Bank of India, Punjab National Bank and the Canara Bank.
Besides the show also includes the participation from the state governments of Andhra Pradesh, Uttaranchal, Rubber, Coffee and the Coir Board as well as APEDA and ITC Agro, as well as the Diamond and Gem Development Corporation
"The increasing presence of Indian companies in China is testimony to our interests in global footprint through joint ventures, acquisitions and establishing production units," Deveshwar said.
