Sino-Indian joint study on RTA by Oct http://www.ndtvprofit.com/homepage/storybusinessnew.asp?template=&whichstory=n&id=38568
Press Trust of India
Wednesday, May 30, 2007 (Beijing):
Amid an impressive 57 per cent growth in bilateral trade, China and India will finish a joint study on a potential regional trade pact by October.
"Governmental agencies and research institutions from the two sides, headed by the commerce ministry and the Indian department of commerce, have conducted a feasibility study on the regional trade arrangement," Vice-Minister of Commerce, Yi Xiaozhun said.
"We expect to complete the study by October," he was quoted as saying by the China Daily. The study was kicked off in New Delhi in March 2006.
So far, three rounds of working panels have been held studying issues concerning trade in goods, trade in service and investment. Yi said the study would play a key role in the economic integration in Asia if it leads to a regional trade pact linking China and India.
Bilateral trade
According to statistics from the Ministry of Commerce, trade between China and India hit $24.9 billion last year, exceeding the $20 billion goal two years ahead of target.
In the first quarter (January-March) of this year, India-China bilateral trade touched $8.22 billion, up 56.97 per cent over the same period last year, latest Chinese customs figures showed.
Indian exports to China during January-March were worth $3.56 billion, up 43.61 per cent over the same period of last year. Indian imports from China surged during the first quarter by 68.95 per cent to $4.65 billion. China enjoyed a trade surplus of $1.09 billion in the first quarter.
"The business communities in China and India are determined to raise bilateral trade up to $40 billion by the year 2010," Wang said at a recent India-China business meeting.
"But if we increase our bilateral trade at this speed (58 per cent), I think we can reach $40 billion by 2009, an year earlier than targeted," he further added.
According to the Chinese Ministry of Commerce, India was China's 10th-largest trade partner in 2006, while Indian statistics showed China was India's second-largest trade partner after the United States.
Chinese investment in India totalled $17 million by the end of last year, mainly in the sectors of electronics, communications and light industry.