Increase exports of manufactured goods to China: Assocham.

NEW DELHI: Expressing concern over the increasing shipments of primary products like ores and minerals to China, Assocham today said India must push for exports of manufactured goods to the neighbouring market.

The industry chamber said China has emerged as the largest market for primary products and it accounts for about 45 per cent of India's total exports to the neighbouring country.

"(This is) clearly throwing a warning that the country's basic wealth is being shipped to the Chinese manufactures, who are rather aggressive in value addition," it said.

About one-third of India's total exports to China comprised ores and minerals in 2011-12, it said, adding "export of mineral resources sucks our natural resources leaving little for value-added manufactured products in the country".

It expects that even though there is a global slowdown, the Chinese importers of ores and minerals would not reduce the offtake "as they would like to build strategic reserves of such critical raw materials".

Assocham said that while some measures like export duty on iron ores have been taken, "India must push for increased exports of manufactured goods to the Chinese markets".

Indian exporters should explore opportunities in increasing exports in sectors like engineering, chemicals and petroleum.

In 2011-12, the engineering goods were the second biggest item of exports to China, followed by petroleum products.

Engineering goods exports accounted for about 22 per cent of India's total shipments to China in the previous financial year, while petroleum products claimed about 13-14 per cent of India's outward shipments to the neighbouring country.

Chemicals and the related product's share in India's total exports to China was about 7-8 per cent.

It said increased exports of these products would help in bridging the huge trade deficit with China.

"A conscious effort must be made to decrease share of ores and minerals to China," it added.

During April-January 2011-12, India's trade gap with China stood at $ 33 billion.

Further, it suggested for hike in exports duty on iron ores.

Source : economictimes.indiatimes.com