China-India to Become World’s Largest Trading Partners by 2030.

Nov. 14 – Bilateral trade between China and India will increase from this year’s US$63 billion to US$100 billion by 2030, making Asia’s leading emerging economies the world’s largest trading partners at the same time, the Associated Chambers of Commerce and Industry of India (Assocham) said last week.

“China has already raced past the United States, Britain and Japan to become India’s largest trading partner,” Assocham said in its statement. “Indian companies can gain substantially by accessing Chinese capital goods at attractive prices by way of imports.”

India and China signed a trade agreement in 1984, have officially granted each other Most Favored Nation status, and have also ratified a Double Taxation Avoidance Agreement. However, the Indian government has issued a trade-sensitive proposal recently that could impact on the future of Sino-Indian trade.

“The (Indian) government’s proposal to hike tariff and non-tariff barriers on imports of some Chinese goods or impose a complete ban on specific items like power and telecom equipment will send negative signals to India’s trade partners and affect the investment climate in key sectors,” warned the organization in its statement.

Statistics show that India has emerged as China’s seventh largest export market and tenth largest trade partner. Furthermore, China has more than a 10 percent share in India’s total trade.

During the period from 2010-2011, China’s exports to India came at US$43.5 billion, representing an increase of 41 percent compared to the previous year, while its imports from India reached US$19.6 billion for 68.8 percent growth year-on-year.

India mainly exports to China metals, ores, and cotton while the country imports Chinese goods such as electrical machinery and equipment, nuclear reactors and boilers, organic chemicals, fertilizers and iron and steel, according to Assocham.

Source : 2point6billion.com