India to boost exports to China

India on Wednesday launched a determined bid to diversify its export basket to China by roping in major corporates, including L&T, Ranbaxy, TCS and NIIT, to showcase their technological prowess in the world's most dynamic market.

'India Day', the largest-ever exhibition of its kind organised by the Indian Embassy in Beijing, was inaugurated as part of a major trade show in Chengdu, capital of south-west China's Sichuan province, which is emerging as a key information technology hub of China.

As part of the 'China Western Region Commodities Fair', an exhibition of Indian postal stamps as well as a photo exhibition of major Buddhist sites were also inaugurated by the Vice Governor of Sichuan, Zhong Zuo Ha.

Apart from this, Indian companies, along with the Confederation of Indian Industry, organised a seminar, which was attended by senior executives of some 70 companies, Vinay Kwatra, Commercial and Economic Councillor of the Indian Embassy, said.

The three-day fair will give an exposure to India and enable major Indian companies to expand their reach in China's western region and meet with potential Chinese partners and clients, Kwatra told PTI.

There are several areas, including agriculture, dairy industry, food processing, auto-components, pharmaceuticals, healthcare, machine tools and Information Technology where the two countries could benefit from expansion and diversification, he said.

The Indian companies which are participating in the fair include L&T, NIIT, TCS, iGate Solutions, SBI, Air India and Ranbaxy, all of whom have established bases in China.

During the seminar, Chinese enterprises were given a briefing on the Indian economy and the potential for mutually beneficial cooperation.

While acknowledging the positive momentum in India-China bilateral trade, industry experts said both countries need to examine its various parameters closely, particularly the narrow composition of the trade basket and the insufficient use of each other's comparative advantages.

According to latest Chinese trade statistics, Sino-India bilateral trade during the first quarter of 2005 touched $4.46 billion, up 42.4 per cent compared to the corresponding period last year.

During January-March period, Indian exports to China recorded a total value of $2.72 billion, up 28 per cent over the same period last year.

At the same time, India's imports from China touched $1.74 billion, up 72 per cent. India enjoyed a trade surplus of $983.8 million during the first quarter.