January 17, 2002

'16'

    India’s trade with China is estimated to have registered a growth of over 25% during the year 2000-2001, having increased to US $ 2297.21 million (i.e. US $ 2.2 billion) as against US $ 1825.45 million (i.e. 1.8 billion) during 1999-2000. After registering a decline during 1998-99 due to severe recession in the Asian markets at that time, trade between India and China is now registering a steady growth. As per the present indications, the growth in trade is expected to continue during the current financial year 2001-2002 as well, although the trade balance still continues to be in favour of China.

    During the year 2000-2001, India’s exports to China were valued at US $ 829.24 million, indicating a rise of over 53% compared to exports during 1999-2000, while imports from China valued at US $ 1467.97 million showed an increase of 14.09% over the previous year. Major items of India’s exports to China are iron ore, marine products, plastics & linoleum products, other ores & minerals, cotton yarn, fabrics, made-ups etc. These items constitute 60% of India’s total exports to China, according to the provisional data available from DGCI&S for 2000-2001. The items which registered impressive growth during 2000-2001 were plastics & linoleum products, iron & steel, spices, aluminium, silk waste and processed items. The major items of import from China are coal, coke and briquettes, electronic goods, organic chemicals, raw silk and medicinal and pharmaceutical products.

    While the present profile of India’s exports to China is concentrated largely in the low value-added sectors and manufactured goods have yet to make a breakthrough in the Chinese market, some signs of a more diversified export product-mix are visible from the trends of bilateral trade during 2000-2001 and 2001-2002.