Indo-China trade may cross $17bn

NEW DELHI: China has raced past the UAE to become India’s second-largest trading partner. If growth remains at current levels, India-China trade could cross $17bn by end of 2004-05. In contrast, Indo-US trade has grown by just over 23 per cent in Apr-Aug 2004.
"It’s a stunning development," enthuses Ficci president Onkar Kanwar. "Our view is that China is poised to emerge as the largest trading partner in two to three years.And this is just the beginning."
Ficci sees potential $30bn bilateral trade between the countries in 2010. Many believe that’s being unduly conservative; growth would have to slow considerably for bilateral trade between the Asian giants to remain restricted to $30bn five years from now.
"It is a positive trend and we strongly believe India and China will be largest trading partners," says N Srinivasan, director general, CII. "In all our global industry interactions, it is no more China or India. It is now China and India. In the coming years we see it as China with India."
Assocham feels while trade will increase between India and China, US will be major partner for both. Bilateral trade between China and US hovers around $210bn. China exports $179bn of products to US and imports goods worth $31bn from it.
CII thinks India and US would move closer in knowledge co-operation, hi-tech, new services. Others feel, emerging development is wake-up call to US. "India and US have to move faster in strategic thinking," says Amit Mitra, secretary general, Ficci.