News: Indo-China trade set to touch new high

(TNN 10/09/2006) Kolkata - India-China Friendship Year 2006 has already hit a high note with the bilateral trade targets of $20 billion between India and China for 2008, poised to be crossed this year itself. The bilateral trade volumes for last year surpassed $18 billion.

At India and China: The Next Decade, a joint seminar organised by Observer Research Foundation (ORF) and Centre for Peace Studies, Calcutta University (CU), defence minister Mr Pranab Mukherjee said that with the two countries set to emerge as economic superpowers, India and China have a lot to learn from each other.

Confidence-building measures including the opening of the Nathu La pass have helped erode the memories of times when Indo-China relations were not smooth. Now, developing a strategy to create stonger bonds with China is an integral part of India's foreign policy, said Mr Mukherjee.

Mr Mukherjee said that trade between the two countries will only gain momentum in the years to come. The main exports from India to China include iron-ore, cotton and processed minerals while the main imports are electronic goods, non-electrical machinery, organic chemicals, coal and coke.

Mr Ashish Kumar Banerjee, vice-chancellor, CU, added that India and China can also learn from each other about social issues, existing problems and ways to deal with them. He said that CU was, in fact, planning to set up a China Study Centre with help from the ORF. By 2015, India and China together are projected to account for 14% of the global GDP, while for 2025, the projected figure is 25%, said Mr. Vivek Bharati, advisor, FICCI.

However, both the countries need to deal with certain issues which include a rising problem of joblessness, other than low-paying jobs and health systems which are not up to the mark, said Prof Nirmal Chandra of IIM Calcutta.