China's accession to the World Trade Organisation would open up the Chinese market to Indian exports restricted so far by a bilateral agreement, the Exim Bank has said in a study.

After the WTO accession, FDI to China was expected to rise at the cost of other nations including India. The phasing out the multi fibre arrangement (MFA) by 2005 would end reserved quotas for developing countries and exports of certain commodities like garments and textiles to developed nations would be open to China.

Chinese imports of agricultural products as well as cotton and cotton yarn would rise and thus there would be ample scope for India to increase such exports. Exporters from India had experienced non-tariff barriers, which would lessen after the WTO accession.

In recent years, Indo-China two-way trade has maintained a double digit growth, exceeding $3 billion in 2001-02. Imports into India from China include tyres, bicycles, toys, plastics, dyes and bulk drugs and such imports may rise.

Indian exports to China between January to August 2002 rose 33 per cent, while imports increased 39 per cent during the same period, compared to the corresponding period in 2001.

China has signed up for WTO with commitments like significant reduction in tariff to bring the average level to under 10 per cent by 2005; near zero tariff rate for key agricultural commodities, gradual elimination of all quotas and opening up of critical services sectors.