India china trade relation

SINO-INDIAN TRADE RELATION

INTRODUCTION

• India China Trade Relation• Also known as sino-indian relations• Two most populous and fastest growing economy• Trade relations for over more than 2000 years • However there are many boundary conflicts affecting this

trade

BACKGROUND

• 1949: Government of India extends recognition to the People's Republic of China • 1950: India becomes the first non socialist country to establish trade relation with PRC • 1954: Trade agreement between PRC and India signed in New Delhi • 1976: India China trade relation restore relations after fifteen years gap • 1988: Indian Prime Minister Rajiv Gandhi pays an official visit to China to establish a

joint working group on boundary question • 1994: Double Taxation avoidance agreement signed • 2006: Indian Defense Minister signed a memorandum of understanding on defense

exchange and cooperation • 2008: Bilateral trade breaks $50 billion mark and China becomes India's largest

trading partner in goods. • 2010: 60th anniversary of bilateral relations commemorated through "Festival of India

in China" and "Festival of China in India"

OBJECTIVE OF STUDY

1. Major Sectors that India Exports to China.

2. Major Sectors that India Imports From China.

Major Sectors that India Exports to China

1. Cotton

2. Copper and Articles thereof

3. Ores, Slag and Ash

COTTON

2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2003-020.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

COTTON

COTTON

COPPER AND ARTICLES THEREOF

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2003-02

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

COPPER AND ARTICLES THEREOF

COPPER AND ARTICLES THERE OF

ORES, SLAG AND ASH

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2003-02

0.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

ORES,SLAG AND ASH

ORES,SLAG AND ASH

Major Sectors that India Imports from China

1. Organic Chemicals.

2. Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof.

3. Electrical machinery and Equipment and Parts Thereof; Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts.

ORGANIC CHEMICALS

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2003-02

0.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

ORGANIC CHEMICALS

ORGANIC CHEMICALS

NUCLEAR REACTORS, BOILERS; PARTS THEREOF.

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2003-02

0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF.

NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL AP-PLIANCES; PARTS THEREOF.

ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2003-02

0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND RE-PRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS,AND PARTS.

ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUC-ERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS,AND PARTS.

DEVELOPMENT OF TRADE RELATIONS BETWEEN INDIA AND CHINA

• During a recent visit of Chinese premier MR Li Keqiang to India, he suggested his willingness to launch FREE TRADE ACT with India.

• The two countries have set themselves the target of increasing the investment to $ 100 billion by 2015.India wants to offer china more pharmaceuticals and IT.

• The export of buffalo meat was not allowed from India to china and this has been a long pending issue between the two countries.

• The marine products export development authority and AQSIQ also signed an MOU on co-operation for import and export of fishery products.

• An MOU was also signed between pharmaceuticals export promotion council of India and the china chamber of commerce for import and export of Medicines and health products.

BY GOVERNMENT TO HELP EXPORTERS

• Market assess to sector such as IT and Pharmacy• Stress on promoting mutual co-operation in energy

efficiency and environmental protection • Cut in freight charges• Indian handicrafts are seeing a huge market in China• Indo-China border trade

Problems faced by exporters

• Language Constraint• Price Competitiveness• Quality Standard Barriers

Future Initiatives to be taken

• Create a constructive economic and political architecture • opportunities should open up in the services sector like

finance, education, health, audit and accounting, legal practice and entertainment

• Need of mutual consensus on custom valuation, clear guidelines, uniform documentation, increase in efficiency of port and customs

• agreement should include trade in both goods and services • Harmonization of technical and agricultural standards

Future Initiatives to be taken

• Language barrier must be addressed • Pre-shipment inspection agreement to reduce Non-Tariff

barrier• China should welcome Indian companies to explore • Both the countries have already agreed to push the

bilateral trade to USD 100 billion mark by 2015

• what is needed is to become partners, instead of rivals

Group 2