What does India stand to gain?
In 2006, the volume of trade between the two nations is expected to cross 20 billion dollars, reports Nilova Roy Chaudhury.india Updated: Nov 21, 2006 01:33 IST
What is the current volume of trade between the two nations?
In 2006, the volume is expected to cross 20 billion dollars, a figure that the two countries had aimed to reach by 2008. In 2005, the figure was 17.5 billion dollars. Unlike with Pakistan, India and China agreed, during the mid 1990's, to let contentious issues like the boundary dispute remain on the back burner while they developed commercial ties. From a figure of 260 million dollars of bilateral trade in 1991, the figure is set to cross 30 billion dollars before 2010.
What are major objects traded between the two countries?
Iron ore for steel manufacture constitutes around 50 per cent of India's trade basket to China, Textile fibre to make clothes and mint oil for pharmaceutical products are the other major exports. The balance of trade is currently in China's favour as Indian imports from China are mainly manufactured goods and value added goods.
What do China and India plan about FTA?
India and China hope to initiate talks on a Free Trade Area agreement to expand the growing volume of trade, but negotiations will take time. China and Pakistan, 'all weather friends', already have an FTA agreement in place.
How is business shaping up at the border trading post?
India and China opened a border trading post at Nathu La, after four decades, in July. While the volume of trade there is negligible, valued at around Rs 15 crore the opening of the trading post was more symbolic, to show that the Sikkim issue was no longer an irritant between the two countries, and that bilateral ties, after the low of the 1962 borderwar, has reached a "level of maturation."
How does Hu’s visit benefit India?
President Hu's visit will see the signing of a Bilateral Investment Promotion and Protection Agreement (BIPA) and MOUs easing visa restrictions between business people of both countries to bolster trade relations. It will also see the expansion of air links between both countries, with more flights between not only Delhi and Beijing, but also Kolkata Shanghai.
First Published: Nov 21, 2006 01:33 IST