Wednesday, November 26, 2003
India-China bilateral trade registers new record
Anil K Joseph (PTI) Beijing, November 26
India-China bilateral trade has crossed the $5-billion mark for the first time in history with Indian exports growing by 85.3 per cent during the first nine months of the year, latest Chinese customs statistics show.
Bilateral trade during January-September 2003 touched $5.33 billion, up 54.8 per cent compared to the same period last year when total trade was $3.44 billion.
India's exports to China during the first three quarters of this year touched $2.95 billion, up 85.3 per cent compared to $1.59 billion during the corresponding period in 2002.
In September alone, India exported goods worth $334 million to China, up 65.3 per cent over the same period in 2002.
China's exports to India also witnessed a growth of 28.4 per cent during the period when the communist giant shipped goods worth $2.37 billion compared to $1.84 billion during the first nine months of 2002.
India, thus had a favourable trade balance of $584 million in the first three quarters compared to $452 million in the negative during the same period last year.
However, the composition of the Indian export basket to China has not seen any substantial change and comprises iron and steel, ores, plastics, organic chemicals, cotton, mineral fuels, hides and skins and machinery.
The iron and steel sector is continuing its stellar performance in China due to the massive construction activities in the world's fastest developing nation.
During January-September period, India exported iron and steel worth $851.9 million compared to $140.5 million in 2002, registering a growth rate of 506 per cent.
The ores, slag and ash sector had a 72 per cent growth in the first six months of the year when $816.6 million was earned by Indian companies compared to $474.6 million last year during the first three quarters.
Plastics is another high-performance area where China imported $234.4 million worth of goods from India compared to $177.9 million last year, registering a growth of 32 per cent. Reliance Industries Limited (RIL) is emerging as one of the top players in the polymer business in China.
Indian exports of machinery to China also witnessed an impressive growth of 126 per cent during January-September period to touch $43.1 million compared to $19.1 million in 2002.
However, cotton exports to China continues to dwindle and during the first nine months of the year, this sector has witnessed a negative growth of 43 per cent.
Major Indian imports from China during the first nine months of this year continues to be electrical machinery, organic chemicals, mineral fuels and silk.
Chinese exports of electrical machinery to India witnessed 29 per cent growth to touch $464.3 million compared to $360.3 million during January-September 2002.
While China's organic chemicals exports to India had a growth of 18 per cent, inorganic chemicals sector witnessed a 19.4 per cent increase in exports.
Chinese silk continues to do well in India with imports rising 20 per cent to touch $182.8 million, up from $152.8 million during the first nine months of 2002.
Official sources are optimistic that if the current trend persists, the target of $7 billion in India-China trade in 2003 would be met and next year the trade would further grow to hit an all-time high at $10 billion.
© Hindustan Times Ltd. 2003.