Over 60 Indian businesses have set up operations in Shanghai, part of the dynamic East China region which accounts for a third of India-China bilateral trade.
"The dynamic region of East China plays a vital role in China's economic development. It also enjoys the pride of place in India's growing economic engagement with China, accounting for a third of bilateral trade," Consul-General of India in Shanghai, Sujan Chinoy said.
Inaugurating an India-China Buyer-Seller meet organised by the Federation of Indian Export Organisations in Shanghai in the eastern metropolis, Chinoy said that more and more Indian entrepreneurs were setting up operations in and around Shanghai in the East China region, contributing to the growing bilateral trade.
India-China trade in 2004 touched a record $13.6 billion. According to the latest Chinese Customs statistics, during the first six months of 2005, bilateral trade volume has touched $9.3 billion.
While bilateral trade has witnessed a remarkable increase in recent years, there has emerged a very welcome spurt in investments and technical collaboration as well, he said.
"This, and the growth in the tourism and civil aviation sectors in both countries, has resulted in enhanced people-to-people contacts," he said at the meet.
Speaking on the occasion, the chairman of FIEO's northern region, R K Dhawan predicted that China is set to overtake the US as the largest trading partner of India.
Dhawan, who is leading a multi-sectoral delegation of leading Indian exporters to China, said the visit has been highly successful in terms of business negotiated as well as enquiries generated from similar buyer-seller meetings in Beijing as well as in the southern city of Guangzhou.
"They have exceeded our pre-visit expectations," he said while noting that the growth in India-China bilateral trade speaks volumes of the opportunities available to the trading communities of both countries.
"If we maintain the current growth of nearly 40 per cent, our trade volume will reach $50 billion by the year 2008. Very soon, China will replace the US as the largest trading partner of India," he said.
The Indian exporters and manufactures currently visiting China are seeking opportunities of trading with their Chinese counterparts, he said, adding the Indian businessmen have brought offers, both to sell their products and also source products from China. The delegates are also seeking avenues for setting up joint venture units, he said.
The buyer-seller meet, organised in collaboration with the Consulate-General in Shanghai, the Shanghai Federation of Industry and Commerce and the Shanghai Economic Commission, he hoped would offer plenty of opportunities to both the Chinese and Indian businesses.
Vice chairman of the Shanghai Federation of Industry and Commerce, Ji Xiao Dong said that his organisation was fully prepared to assist the Indian companies who wanted to set up operations in Shanghai.
