India-China trade to cross $120 billion by 2012

MUMBAI - India’s bilateral trade with China is likely to cross $120 billion by 2012 on the back of robust economic growth in both the countries, a Chinese diplomat said Saturday.

“Our bilateral trade for the first 9 months of this year was $45.4 billion, $2.2 billion more than the whole volume of last year. This year’s trade is expected to reach $60 billion, said Niu Qingbao, Consul General of China in Mumbai, according to a statement.

He said India-China bilateral trade had beaten targets in the last few years because of fast growing capability and mutual complementarities.

“India-China trade has been growing very fast on the back of fast growing capability and mutual complementarities. China now is Indias largest trading partner. India is Chinas largest trading partner in South Asia,” Niu said at inaugural function of the 8th Chinese Products Expo here.

The event is organised by the China Council for the Promotion of International Trade (CCPIT) in association with the All India Association of Industries (AIAI) and the Consulate General of China.

Niu pointed out that in 2005, the Indian and Chinese prime ministers had set a target to achieve $20 billion trade by 2008, but the target was achieved in 2006 itself. For 2010 our target is $40 billion. We have already crossed it and set to surpass it by 50 percent.

On mutual complementarities, Niu said: China is India’s important market of coal, iron-ore and other raw material while India is China’s important market of home appliances and manufacturing products.

India is now undergoing a huge wave of infrastructure upgrading, while Chinese companies have the best expertise, equipment and financing in building high-speed railways, expressways, ports, airports and bridges. It is impossible to find another pair like this. In 2012 the China-India trade will cross $120 billion, Niu said.