Trade engagement between India and China has increased at an astonishing rate of 521 per cent in the last five years. A recent study which has pointed this out also shows that during the same time India’s trade with its largest trading partner, the US, rose only by 63 per cent
According to a study by industry chamber Assocham, Indo-China trade has increased by a massive 521 per cent in the last five years to 11.35 billion dollars in 2005 from $1.8 billion in 1999-2000.
Commenting on the study, Assocham president Anil K. Agarwal said in a statement, "The reason for the increase is because China’s trade in international market is increasing. China has the advantage over the world in manufacturing low cost goods and is competitively edged in mass manufacturing." The other reasons are large network of SEZs, hi-tech parks and the economies of large scale leading to low cost of production in China, he said.
The study shows that while India’s trade with China, went up by 521 per cent, its trade with the US rose only by 63 per cent to 19.5 billion dollars in 2005 from 11.9 billion five years ago in 2000. India’s trade growth with its second biggest trade partner, the European Union, showed a marginal dip to 18.94 per cent in 2004-05 from 20.73 per cent in 2003-04, it said.
Clearly indicating that both China and India are countries with huge business potential in the future, the study says that global trade is all set to be changed by the "synergy" between India and China, with their combined trade accounting for up to 10 per cent (It may be pointed here that China accounting for 9 per cent and India 1 per cent) of the world’s total by 2010 from the present level of 7.02 per cent (China 6.27 per cent and India 0.75 per cent) if the two countries enter in a "free trade agreement".
The study notes that Sino-Indo collaboration would augur well for the world economy. It says that China’s manufacturing competence, coupled with India’s strengths in research & development and hi-tech services could change the competition in global business.
According to a study by industry chamber Assocham, Indo-China trade has increased by a massive 521 per cent in the last five years to 11.35 billion dollars in 2005 from $1.8 billion in 1999-2000.
Commenting on the study, Assocham president Anil K. Agarwal said in a statement, "The reason for the increase is because China’s trade in international market is increasing. China has the advantage over the world in manufacturing low cost goods and is competitively edged in mass manufacturing." The other reasons are large network of SEZs, hi-tech parks and the economies of large scale leading to low cost of production in China, he said.
The study shows that while India’s trade with China, went up by 521 per cent, its trade with the US rose only by 63 per cent to 19.5 billion dollars in 2005 from 11.9 billion five years ago in 2000. India’s trade growth with its second biggest trade partner, the European Union, showed a marginal dip to 18.94 per cent in 2004-05 from 20.73 per cent in 2003-04, it said.
Clearly indicating that both China and India are countries with huge business potential in the future, the study says that global trade is all set to be changed by the "synergy" between India and China, with their combined trade accounting for up to 10 per cent (It may be pointed here that China accounting for 9 per cent and India 1 per cent) of the world’s total by 2010 from the present level of 7.02 per cent (China 6.27 per cent and India 0.75 per cent) if the two countries enter in a "free trade agreement".
The study notes that Sino-Indo collaboration would augur well for the world economy. It says that China’s manufacturing competence, coupled with India’s strengths in research & development and hi-tech services could change the competition in global business.