China has become India's third largest trading partner and the latter has emerged as China's largest trading partner in South Asia.india Updated: Nov 15, 2006 13:42 IST
There is great potential to boost bilateral trade between India and China, from the present level of $19 billion to $50 billion in the next three to four years.
China has become India's third largest trading partner and the latter has emerged as China's largest trading partner in South Asia.
The growing investment ties and economic cooperation could be gauged from the fact that in 2005, over 150 Indian enterprises, including Ranbaxy, TCS, Infosys, set up branches for over 1,000 projects in China.
China's monthly trade surplus reached $23.8 billion in October, higher than the $15.3 billion reported in September, according to the latest statistics from the General Administration of Customs.
In October, exports jumped 29.6 per cent year on year to $88.1 billion, while imports grew $14.7 per cent to $64.3 billion.
According to the data, China's total trade surplus for the first ten months of the year was more than $133.6 billion.
Since 2005, India had become one of the most important overseas markets of project contracts for Chinese enterprises.
On July 6, 2006, China and India re-opened Nathu la, an ancient trade route which was part of the Silk Road.
The total volume of trade through this pass, located at a height of about 15,000 feet, since July 6 is officially stated to be about Rs 19 lakh — imports worth Rs 10 lakh and exports worth Rs 9 lakh.
According to existing agreement, India can export 29 items to China through the Nathula border pass, which was opened on July six after remaining closed for 44 years since the 1962 Sino-Indian war.
The Nathu la pass connects India and China through Himalayas and was closed when the Sino-Indian War broke out in 1962.