Govt pushes China to buy more products from India

Discussion in 'China' started by huaxia rox, Oct 15, 2012.

  1. huaxia rox

    huaxia rox Senior Member Senior Member

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    Govt pushes China to buy more products from India

    With India’s trade deficit with China soaring by two-thirds to $40 billion in the last financial year, the government is making efforts to narrow the trade gap by scaling up exports of value-added commodities to the country.

    The Ministry of Commerce & Industry is sending exporters’ delegations to China almost every month, which are aggressively pushing China to buy more value-added products from India, instead of merely importing intermediary products and raw materials.

    Rafeeque Ahmed, president, Federation of Indian Exports Organisation (FIEO) is currently leading a delegation of 52 Indian exhibitors to participate in the China Import and Export Fair (Canton Fair), held biannually in Guangzhou. As many as 210 countries had participated in the spring and autumn editions of the Canton Fair which had generated business of $ 74.76 billion in 2011.

    Ahmed said, “The cost of production in China has gone up 40-50% over the last two years which has opened markets for manufactured products in the country. We have recently started exporting household and lifestyle products to China and are looking at penetrating the country with more high-end products like auto components, pharmaceuticals, handicrafts and readymade garments.” Bilateral trade between the two countries stood at $ 75.59 billion in the last financial year. But while China’s exports to India stood at $ 57.51 billion, Indian imports into the country were less than a third at $ 18.01 billion.

    Chinese exports to India mainly consist of manufactured items required for India’s ever-expanding telecom, power and manufacturing industries, India exports raw materials and intermediary products. In 2010-11, export of non-ferrous metals and iron-ore constituted 50% of India’s export to China.

    “The problem lies in the fact that Chinese imports are of higher value than the goods that are exported from India which leads to a widening of trade deficit. But we are hopeful within the next five years we will be able to bridge the gap”, added Ahmed.

    Indian heavy industries, for one, rely largely on import of raw materials and finished goods from China. In the last financial year itself, import of electrical machinery and equipment from China went up by 14% to $ 13.52 billion, while import of machinery such as nuclear reactors and boilers increased by 34% to $ 10.35 billion. Similarly, import of project goods increased by 54% to $ 4.9 billion in the last fiscal from $3.2 billion in the year-ago period.

    Interestingly, in the last couple of years, import of power and telecommunication equipment from China has seen a huge rise. In 2010-11, import of mobile phones and other kinds of wireless phones reached $4.1 billion, up 60% year-on-year from $2.5 billion in 2009-10.

    India’s main items of export to China include petroleum products, gems and jewellery, transport equipment, other raw materials and machinery. Last fiscal, export of ores, slag and ash to China declined by 3.20% $4.61billion due to slowing production in the country’s steel sector. Export of cotton, however, more than doubled to $4 billion in the period.

    India has set up an India-China Joint Group on Economic Relations, Trade, Science and Technology in order to address the issue of widening trade deficit.
     
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  3. Hari Sud

    Hari Sud Senior Member Senior Member

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    One sided Chinese India trade to be discouraged. It is bad for India. Trade in telecommunication hardware to be ended. It is not trade at all. It is Chinese selling cut rate hardware. It is a security threat. US has just recognised only recently. India must do the same and end import of tele-communication gear from china. More expensive and longer lasting any hardware is better than copied or reverse engineered hardware. Has India not learning enough from Aircraft Carrier fire bricks used by the Russians as these were cheap and on the paper had the same specification as firebricks in the west.

    No, until Chinese buy stuff from India, the latter should frreze imports from China.
     
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  4. chase

    chase Tihar Jail Banned

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    India has a new SEZ project in GIFT,Gujarat.They are making a international financial center but the worrying thing is that they are using products from Huawei for network integration and it is very worrying.
    I have nothing against the chinese , i love their culture but i don't trust the Communists , they have nefarious intentions.
     
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  5. RedDragon

    RedDragon Regular Member

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    Business is business, if a product is more cost effective than other, then everyone will buy it.
     
  6. s002wjh

    s002wjh Senior Member Senior Member

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    what i find it funny is doesn't matter is chinese or western brand, pretty much most tele-communication gear are Made in China. :rolleyes: even the pc motherboard, the computer government use are made in china, so its stupid to say china brand cause security concern, when pretty much all electronic are made in china anyway.
     
  7. rockdog

    rockdog Regular Member

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    By the current industry structures, if force the trade between nations to be equal, let's say $ 57.51 billion to $ 57.51 billion, I am worried that there would be huge eco disaster to India, since China is hungry on raw materials and other unfinished products from India, which would leads massive natural resource demanding from India.

    So i think the trade balancing is a long term process, and can't be dealt with in short time or any kind of rude way. Plus, for the cost-efficient solution on Indian's long term infrastructure way, Chinese products would provide good options, from steel (60% of world production), telecom equipment to energy&power equipment, construction machinery, even military supportive machinery...

    eg:
    The crane for HMS queen Elizabeth class aircraft carriers finished by CHina
    http://defenceforumindia.com/forum/...h-class-aircraft-carriers-finished-china.html

    In fact, some Chinese companies are already providing Technical Support to India's companies belong to its Defense Sector,
    and here comes a long story from a Senior Chinese Engineer working (technical assistant) in a Indian defense related company, if any Indian member would read Chinese or use Google Translate.

    http://lt.cjdby.net/thread-1072584-1-1.html

    http://translate.google.com.hk/tran...u=http://lt.cjdby.net/thread-1072584-1-1.html


    Notice, for the AC fire bricks, buy the military level product, not civil and make sure install them correctly ^_^
     
    Last edited: Oct 16, 2012
  8. G90

    G90 Regular Member

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    :rofl: Among Chinese, the only known thing indians made are snake oils, and I am not kidding about it:rofl:
     
  9. badguy2000

    badguy2000 Respected Member Senior Member

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    the problem is what india can provide to CHIna? iron ore,low-cost labour or Asam Tea?
     
  10. rockdog

    rockdog Regular Member

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    In fact recently the GOI made lots of restriction on iron ore export to China, i think by then trade deficit would become even larger.
     
  11. uvbar

    uvbar Regular Member

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    thats not due to some kind of grudge its SAIL's policy
     
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  12. huaxia rox

    huaxia rox Senior Member Senior Member

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    trade is done not by force....if indians start 'exporting household and lifestyle products to China and are looking at penetrating the country with more high-end products like auto components, pharmaceuticals, handicrafts and readymade garments.' they should 1st let chinese know what they are actually talking about...what they can actually offer....

    i know land rover etc has been sold to indian tata and chinese would still like to buy that.....thats all i know besides some fake copy drugs indians can make for international consumers that chinese might need..........and what else worth buying from india???

    tell chinese then chinese may consider.....
     
  13. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    ^^ Before yammering about "fake drugs", realize that Chinese were caught selling fake drugs in Africa with "Made in India" label.
     
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  14. huaxia rox

    huaxia rox Senior Member Senior Member

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    chinese admit in some illegal factories there are some make fake drugs and they should be caught....

    what about indians???you dont make fake drugs???
     
  15. huaxia rox

    huaxia rox Senior Member Senior Member

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    actually i dont have problem with your fake drugs so long as your people copy all the techs and all the effective ingredient in the drugs and there are customers think them worth buying.....
     
  16. DaTang

    DaTang Tihar Jail Banned

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    good point, I actually think Indian Pharmaceutical industry has contributed a lot to the human progress by counterfeiting patented drugs. Anyways, being healthy is a human right.
     
  17. maomao

    maomao Veteran Hunter of Maleecha Senior Member

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    Fake drugs but good ingredients?? Do you realize how preposterous you chinese sound?

    The people who do not have integrity to rightfully name the country of manufacturing (to increase sales) -- you people claim these people will uphold the out-most quality and high safety standards of Medicines?

    What concocted logic just to project chinese copy and steal policy as legit business!

    I hope, rather than poisoning the world with fake chinese medicines these low life thug chinese manufacturers poison - ccp slaves, only then you will realize how good your fake drugs are!!
     
    Last edited: Oct 24, 2012
  18. DaTang

    DaTang Tihar Jail Banned

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    hahaha, can you even tell the sarcastic tone between the line? India being world's largest counterfeiter of patented medicine are lecturing Chinese on integrity? what a joke.
     

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