India, China trade to be $40 billion by 2010

[tyagi]

India, China trade to be $40 billion by 2010 : India Business


New Delhi, Nov 6 - India and China are poised to achieve bilateral trade of up to $40 billion (Rs.1.6 trillion) by 2010, Chinese ambassador Sun Yuxi said here Tuesday.

'China and India's bilateral relations witnessed all round development three years ago. In 2004, our trade was less than $14 billion but now till the end of October, trade has gone up to $27 billion,' Yuxi told a conference organised by the Federation of Indian Export Organisations (FIEO).

'This year we will well be crossing $30 billion and our target for 2010 is $40 billion, which is three years away. If we grow in this way, personally I think we can aim for $50 billion by 2010,' he added.

He also said that both countries are currently negotiating a trade agreement.

'We are working on something what is called a regional trade agreement, which is on similar terms as a free trade agreement,' he said.

'Our trade is developing very fast, faster than expected by our respective governments,' Yuxi said, adding that both countries have become partners in economic development.

 

[Sena Lee]

This is good news.

Sino-India trade is important, I hope this grows more in the future.

The regional trade agreement looks beneficial for further Sino-India trade. Hope it goes ahead.

 

[Devendra9]

Thats grate news. One small question. Trade between india and china will benifit whome more? India or china? Or both same percentage?

 

[Flintlock]

Thats grate news. One small question. Trade between india and china will benifit whome more? India or china? Or both same percentage?

Yes, that is a very pertinent question.

Will China flood Indian markets with cheap goods? US can afford a massive trade deficit. India cannot.

India better have something substantial to export to China, otherwise there is very little advantage for India in this.

 

[Bushroda]

Thats grate news. One small question. Trade between india and china will benifit whome more? India or china? Or both same percentage?

Trade benefits both the partners. Even if say balance of trade is tilted more towards China still India benefits from cheaper goods which would increase the consumer spending benefitting the economy indirectly. Everybody takes care of their own trade interests & India or China wouldn't go for any such arrangement where there domestic industries get hurt. Afterall, we are through with those late 90s or early 2000 period when Chinese manufactured goods simply swallowed many a countries domestic industries. Industrial manufacturing needs raw material & it would be beneficial for India if the raw material comes from China instead of some far of place.

 

[Indian Su30 MKI]

I think china will benifit more than India.
But one thing brothers please don't believe the chinese.It is better to belive the pakistanis.

 

[Nemesis]

A dead thread back to life!! Necromancy is afoot here. On that note, i'd like to see a movie about it. George E Romero presents - Rise of the dead threads!

 

[applesauce]

Thats grate news. One small question. Trade between india and china will benifit whome more? India or china? Or both same percentage?

india has high tariffs on chinese goods so even if china wants to flood the market india can simple raise the tax, but at the end of the day trade is good for everyone, goods become affordable/avalible in india and chinese companies make money

 

[Ingis]

india has high tariffs on chinese goods so even if china wants to flood the market india can simple raise the tax, but at the end of the day trade is good for everyone, goods become affordable/avalible in india and chinese companies make money

I agree. But still, India's tariffs is undermined by the fact that Chinese currency is undervalued. That continues to give Chinese exporters a major advantage.