The Hindu : Front Page : Manmohan’s prescription for better Sino-Indian economic ties

Online edition of India's National Newspaper
Tuesday, Jan 15, 2008
ePaper | Mobile/PDA Version

Front Page

Front Page

Manmohan’s prescription for better Sino-Indian economic ties

Pallavi Aiyar

PM underlines importance of creating a level-playing field by addressing issues such as non-tariff barriers, IPR protection

Jointly develop a strategic plan, evolve profitable business models

Acquire insights into each other’s markets, business customs and management styles

— Photo: PTI/Shahbaz Khan

Towards stronger ties: Prime Minister Manmohan Singh with Chinese Premier Wen Jiabao during the welcome ceremony at the Great Hall of the People in Beijing on Monday.

Beijing: More than 400 members of the Chinese government and business community gathered here on Monday in what, according to Union Commerce Minister Kamal Nath, was the largest ever business congress between India and China.

The summit was held against a backdrop of record highs in bilateral trade and investment. In 2007, Sino-Indian trade reached $38.6 billion. However, a widening trade deficit for India (currently around $10 billion), coupled with the narrow range of products in India’s basket of exports, has left Indian industry somewhat nervous.

The keynote address at the summit was delivered by Prime Minister Manmohan Singh. That this was Dr. Singh’s first formal appearance during his three-day China visit only underscored the importance bilateral economic engagement has come to occupy in overall ties.

Dr. Singh suggested a three-pronged strategy for the business communities on both sides to enhance economic relationship including “jointly developing a strategic plan for the future,” evolving “profitable business models that factor in complementarities and competitive strengths” and acquiring “insights into each other’s markets, business customs and management styles.”

The Prime Minister urged Indian industry to “vigorously pursue opportunities for expanding non-traditional items of export” to address trade imbalance.

As all trade targets set by the Indian and Chinese sides so far were always met in advance, he wondered whether “the two governments have been underestimating the capabilities of our respective industries,” and proposed the setting of more ambitious targets. Earlier on at the meeting, representatives of Indian industry raised concerns at non-tariff barriers and other technical curbs to trade.

Speaking in his capacity as president of the Confederation of Indian industry, Sunil Bharti Mittal said the message India Inc was bringing to China was one of “cooperation, partnership and deeper engagement.” However, a level-playing field needed to be created and it “was the legitimate aspiration of Indian industry to have a stake in China’s economic growth,” equal to that the Chinese were now taking in India’s growth.

Dr. Singh also underlined the importance of “creating a level-playing field by addressing issues such as non-tariff barriers, IPR protection and market-related exchange rates.”

On the Chinese side, Assistant Foreign Minister Chen Jian highlighted the fact that his country’s trade with India was growing at a faster rate than with any other major trading partner. Contracts worth more than $5 billion were signed by Chinese companies in the first three quarters of 2007 for implementation of infrastructure projects in India. This was the highest value for contracts signed by China with any other country during this period.

Mr. Chen admitted that the trade surplus with India was of concern to the Chinese side as well, and said Beijing planned to increase imports. It would send delegations to India on procurement missions.

Printer friendly page
Send this article to Friends by E-Mail

Front Page