China, India set $50 bn stretch target for trade ENS ECONOMIC BUREAU Posted online: Friday, March 17, 2006 at 0000 hrs
NEW DELHI, MARCH 17 China upped the ante for trade with India when its Commerce Minister Bo Xilai set an ambitious trade target of $50 billion between the two giant economies by 2010. While bilateral trade—currently in the region of $18 billion—has been shooting up by 35 per cent over the past five years, this fresh target could see China overtake the US as India's largest trading partner.
In a what was termed as a ''long overdue'' meeting of the Joint Economic Group (JEG) today, India and China decided to set up a group to look at the ''broad contours'' of a regional trade pact. The two also agreed to start work on a bilateral investment promotion agreement (BIPA) and set up a CEO's forum in three months' time to facilitate business relations.
The decision to set up six taskforces related to the World Trade Organisation (WTO), harmonisation of standards, rules of origin, non-tariff barriers, agriculture and reconciliation of trade was also taken at the JEG meeting which was held after a gap of six years.
Later, at a meeting of China-India business forum organised by the CII, Nath said the current trade basket is narrow and restricted to a limited range of goods. ''If our trade is to increase exponentially, it is imperative to diversify the trade basket,'' he said.
Indo-China bilateral trade increased phenomenally in the last six years from $2 billion in 2000-01 to an estimated $18 billion in 2005-06. China runs a trade surplus of about $2.5 billion.
In an eloquent speech, Bo Xilai called for both countries to grab this ''new window of development''