Sino-India trade set to cross $13.6 bn

Bilateral trade between India and China during the first eight months of this year has touched $12.2 billion and is all set to cross the record of $13.6 billion achieved in 2004.

During January-August period, total bilateral trade was worth $12.2 billion, up by 40.37 per cent over the same period last year, latest Chinese customs statistics said.

India's exports to China grew by 28.27 per cent to $6.7 billion while the country's imports from China witnessed a hefty 58.66 per cent increase to touch $5.5 billion.

India enjoyed a trade surplus of $1.2 billion during the first eight-month period in 2005 compared to $1.7 billion last year, it said.

"If such high growth rates can be kept, the aim of increasing the bilateral trade volume to $20 billion or higher by 2008 will be realised soon if not this year," a trade analyst said.

He also noted that the upcoming 'Made in India' trade exposition in Shanghai, China's eastern metropolis and financial hub, would be a good opportunity for the Indian industry to showcase their manufacturing prowess and enhance bilateral trade volume as well as diversify the trade basket.

The third MII, scheduled from October 17 to 20, organised by the Confederation of Indian Industry in cooperation with the Consulate General of India in Shanghai is expected to offer an important window for mutual synergies between Indian and Chinese businesses.

Meanwhile, a report prepared by the Chinese ministry of commerce said that China's two-way foreign trade will hit $1.4 trillion. The ministry has forecast a trade surplus of $90 billion to $100 billion for 2005, compared to a surplus of $32 billion in 2004.

The report said the surplus will be created by a predicted 30 per cent jump in exports to $750 billion, compared with an 18 per cent rise in imports to $660 billion.

China recorded a trade surplus of $60.2 billion in the first eight months of 2005, far surpassing the $32 billion logged in 2004.

Exports remained buoyant in the first eight months, rising 32 per cent year on year to $475.7 billion, while imports grew just 15 per cent to $415.5 billion.

The predicted trade surplus of $90 to 100 billion will account for five per cent of China's total trade volume, compared to 2.8 per cent in 2004, the ministry's report said.

In 2004, China replaced Japan as the world's third largest trader following the United States and Germany with its trade volume hitting $1.15 trillion - 593.4 billion for exports and $561.4 billion  for imports.