Commerce Secretary S N Menon has called for diversification of India? export basket to China to maintain growth rate in bilateral trade.
He was delivering the keynote address at the seminar on ?iversification of Indian Exports to China?jointly organized by the Department of Commerce, Ministry of Commerce and Industry and the Federation of Indian Chambers of Commerce and Industry (FICCI).
?he bilateral trade between the two countries amounted to US $ 11.3 billion in 2004-05. However this is less than 1% of China? global trade. It is indicative of huge opportunities available for Indian entrepreneurs for increasing their exports to China? he said.
Noting that India? exports to China are dominated by a few primary products, Shri Menon said that diversification of export basket would address the issue of deficit in balance of trade position for India.
Menon quoting from various studies noted that a diverse range of products such as auto engine components and automobiles, organic and inorganic products and pharmaceuticals; metal and metal based products like alloy steel bars and rods, agricultural products like grains, tobacco and oilseeds, marine foods, fresh and processed fruits, and vegetables, engineering goods like diesel engines and compressors; medical and optical diagnostic equipment and laboratory equipments, consumer durables and textile yarns have a firm demand in China.
Menon emphasized the need for a special focus on investment and trade in services in knowledge based sectors besides traditional manufacturing sector in view of the dynamic comparative advantage of India. The Indian companies could enter the Chinese domestic markets of US$ 50 billion by using China as a production base.
