Prez seeks access for Indian pharma, IT services in China

BEIJING: Although hers is only a goodwill visit, President Pratibha Patil did not lose the opportunity of reminding the Chinese leadership of the huge trade imbalance between the two sides and pressed it to open up the market and give access to Indian pharmaceutical industry, IT and engineering companies.

Patil, the first Indian Head of State to visit China in a decade, took up the issue of the growing trade imbalance in India-China trade ties during her talks here yesterday, which included separate meetings with President Hu Jintao and Premier Wen Jiabao.
In 2009, the trade imbalance tilted heavily against India. China enjoyed trade surplus of USD 16 billion out of the total USD 44 billion bilateral trade and its exports to India nearly touched USD 30 billion last year.

During her talks, Patil sought access for Indian pharmaceuticals companies, engineering goods, IT-enabled services and agricultural products to the huge Chinese market, official sources said.

India, which is otherwise competitive in manufacturing and services, finds that 75 per cent of its exports to China comprises commodities and raw materials like iron ore.

Industry sources said in sectors like IT, pharmaceuticals, specialised engineering and manufacturing etc., there is scope for greater India-China cooperation that needs to be exploited.

Trade ties ties between India and China have undergone significant transformation in the last two decades.

"Our engagement is broader and the relationship has acquired more substance. From being an insignificant player, China has become India's largest partner with USD 52 billion of goods traded in 2008," an Indian official said.

Quantitatively, the two countries met their target of USD 40 billion three years ahead of schedule and seem to be on course to reach the USD 60 billion level by 2010, he said.

Indian IT can bring real value for the Chinese companies to go global, he said, adding that Indian pharmaceuticals can meet the expanding requirements of China's health care system.

"In the final analysis, we are today looking at a very under-realised relationship. If we get it right, there are immense possibilities for both of us. This will require us to work together closely and cooperatively, with understanding and appreciation of our mutual interests," the official said.