ASSOCHAM signs MoU with China to promote SMEs

28 Aug '14

2 min read

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Small & Medium Enterprises (SMEs) of China have inked five MoUs in different sectors, including textiles and machines for garment industry, to promote and help the SMEs to exchange technologies and enter into joint venture partnerships.

Mr. DS Rawat, secretary general, ASSOCHAM, said India and China will identify the business opportunities in the SMEs segment across wide range of sectors from agricultural products to textiles and machinery.

With the growth in bilateral trade between India and China in the last few years, many Indian companies have started setting up Chinese operations to service both their Indian and MNC clientele in China.

India-China bilateral trade reached US$ 75.5 billion in 2011-12 with India’s trade deficit of about US$ 40 billion. In 2013-14, India’s trade deficit with China stood at $36.21 billion. This trade deficit can be reduced to sustainable levels through more exports from India to china as well as by China’s investing in building manufacturing capacities in India.

“China ranks 31st among countries contributing FDI to India. FDI inflows from China into India currently stand at $0.575 billion while that from India to China reached $0.898 billion,” according to ASSOCHAM paper.

The delegation also focused on strengthening ‘smart manufacturing’, solar energy, green houses/technologies, railway infrastructure supply stations buildings, and escalators for railway metro stations.

ASSOCHAM will be holding a summit for Chinese companies to invest in India. ASSOCHAM shall also be organizing two exhibitions in two provinces of China in Guangdong and Chengdu during October this year.

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