Saturday, October 11, 2008

India-China trade reaches Us $ 37.8 billion in 2007-08 Vice Minister of China meets Kamal Nath

Shri Kamal Nath, Union Minister of Commerce & Industry, has informed that India-China trade in 2007-08 reached US $ 37.8 billion, an increase of 47% over 2006-07. Interacting with the Chinese Vice Minister, Mr. Gao Hucheng, here today, Shri Kamal Nath informed that there are enormous opportunities for both India and China in expanding trade in services particularly in construction and engineering, education, entertainment, financial services, IT & IT-enabled services, transport, tourism and health. Both sides discussed about holding the 8th Joint Economic Group (JEG) at a mutually convenient date. The 7th JEG meeting was held in March 2006. 

After the opening of the third border trade point between India and China, the Chinese side has been looking for expanding the scope of trade through Nathu La. In July 2007, the Indian side proposed an addition of 24 more commodities tradable through Nathu La, mainly food items. In turn, the Chinese side proposed 36 commodities including machinery, motor cycles and electrical appliances. 

China ranks 64th and the cumulative FDI inflows stood at US $ 4.7 million. The top sectors attracting FDI inflows (January 2000 to March 2008) from China are trading, industrial machinery, mining, hotel & tourism and drugs & pharmaceuticals. The top sectors attracting technology from China are metallurgical industries, chemicals (other than fertilizers), electrical equipments, industrial machinery and drugs & pharmaceuticals. 

Earlier today, a Memorandum of Understanding (MOU) on India-China Trade Remedy Cooperation Mechanism, was signed by Shri G.K. Pillai, Commerce Secretary from Indian side and from Chinese side by Mr. Gao Hucheng, Vice Minister.

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