Yes believe in your old British masters.
heres the reality of trade between India and China
As you can see you export raw materials and we sell you finished products.
India's top 15 exports to China (2006-2007)
Ores, Slag, Ash
Cotton + Yarn, Fabric
Organic Chemicals
Copper + Articles Thereof
Precious Stones, Metals
Iron And Steel
Plastic
Machinery
Salt; Sulfur; Earth, Stone
Inorganic Chemcals; Rare Earth Metals
Electrical Machinery
Hides And Skins
Artificial Flowers, Feathers
Tanning, Dye, Paint, Putty
Fish And Seafood
Ores, Slag, Ash; Cotton + Yarn, Fabric; Copper + Articles Thereof; Precious Stones, Metals; Artificial Flowers, Feathers and hides and skin account for US$ 11229.57 million, which is 76% of the total exports to China. This means majority of exports are still low end products.
Organic chemicals, iron and steel, plastics, machinery, inorganic chemicals, electrical machinery account for only US$ 2203.592 million, which is 15% of the total exports to China. This means export of value added products is still to pick up.
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India's top 15 imports from China (2007-2007)
Electrical Machinery
Machinery
Organic Chemicals
Iron And Steel
Iron/Steel Products
Fertilizers
Plastic
Impregnatd Text Fabrics
Silk; Silk Yarn, Fabric
Vehicles, Not Railway
Inorganic Chemicals; Rare Earth Metals
Manmade Filament, Fabric
Optic, Nt 8544;Med Instruments
Mineral Fuel, Oil Etc
Aluminum
Electrical machinery, machinery, plastics, iron & steel, fertilizers, inorganic chemicals, organic chemicals, optical instruments, medical instruments, auto components and aluminum recorded heavy growth in imports from China.
Electrical products, electronic products and machineries occupy 47% of the total imports from China.
Majority of the products imported from China are high end or value added products.
IndiaChina.org