China is poised to import more of value added goods from India as the two fastest growing economies signed a memorandum of understanding in Beijing on Tuesday, putting behind their border and trade related disputes.
“The MoU provides for the Chinese side to import as much of its requirement of value added goods from India as possible,” said a release from the Embassy of India, Beijing.
The bunch of such items could be pharmaceuticals, articles of iron and steel, apparel, agricultural products and auto components. As on now more than two third of the total export from India to China constitutes of iron ore and cotton.
The two countries agreed towards a greater economic cooperation and trade promotion. During his meeting with the Indian Commerce and Industry Minister (C&IM) Anand Sharma, Chinese Premier Wen Jiabao agreed that both sides could work together to ensure more balanced trade.
“China would do its part in working towards this objective,” said the Chinese Prime Minister, Wen Jiabao.
Earlier, the C&IM co-chaired the meeting of 8th India-China Joint Economic Group (JEG) meeting along with the commerce minister of China, Chen Deming, leading to the signing of the MoU. While China is the largest trading partner of India, India is the tenth largest trading partner for China.
“India’s export to China needs to increase,” said Anand Sharma. “Both India and China will lead the growth in next decade and the only way for both China and India to grow is to grow together.”
The Chinese commerce minister also sounded optimistic on increasing trade with India as growth is turning around but added that the whole process of recovery may take time.
“The recovery may take longer as it would be inline with global recovery,” said Deming.