Bilateral trade with China to exceed set targets

26 Mar '08

2 min read

India and China which are recognized as two of the fastest growing economies in the world are likely to achieve a bilateral trade target of US $60 billion by 2010.

With regard to this, the Government of China has promised to lend full support for achieving the target which is showing a yearly increase of around 50 percent.

Experts believe that it is one of the most unique opportunities for both the countries to strengthen their respective economies and collaborate for the attainment of mutual benefits.

Although the Government of the two countries has set a time-frame of three years for achieving the target, the Federation of Indian Micro and Small and Medium Enterprises (FISME) indicates that it would exceed the limit and touch $100 billion by 2010.

However, the Associated Chambers of Commerce and Industry of India (Assocham) suggests that the Government must stay very alert before signing a free trade agreement (FTA) with China since it is likely to flood Indian markets with its price-competitive goods.

Besides, the chamber also believe that the Government must take a thorough consultation with various departments and wait for at least five years before finalizing any agreement with China.

On the other hand a study conducted by FISME recognized nearly 100 products that can be exported to China most of which comprise textiles, apparels, leather and chemicals.

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