FICCI urges focus on five trade areas with China

Diversification of the trade basket with focus on emerging areas such as energy, biotechnology, IT, pharmaceuticals and financial services could ramp up trade between India and China in the coming years.

Spelling out five potential areas of economic co-operation that can form the basis of future economic ties, FICCI has said in a recent paper that in the energy sector, the two nations can share information on the specific blocks that are on offer for exploration.

The need to look at undertaking projects jointly in India, China and other parts of the world has also been suggested.

In the biotechnology field, collaborative R&D in the areas of vaccine development, gene therapy and stem cell research has been suggested.

The two countries can co-operate to ensure free movement of biological material.

Joint effort in the development of drugs and exporting the same to highly regulated markets such as the US, the UK and Australia would give Indo-China ties a new dimension.

In the IT and communications field, embedded software could be a promising area of collaboration, combining India’s expertise with China’s vast manufacturing capabilities, especially for consumer durables.

The chamber has mooted joint R&D projects aimed at designing new products for the global market and joint development of training and education centres for skilled and domain-specific IT knowledge.

India can engage with China to enhance its manufacturing bases and encourage local integration of hardware products.

This can help reduce costs significantly and provide shorter cycle times and faster local availability.

In the pharmaceuticals sector, co-operation in both early-stage discovery work and clinical trials has been suggested.

In the financial services sphere, exchanging information on the reforms that are taking place in the respective pensions sectors and various social security schemes that are in place could benefit both countries.

In addition, FICCI has identified several items as focus products to enhance and diversify India’s exports to China.

These are automobiles (light commercial vehicles), auto engines and components, electronic components, metals and metal-based products, basic drugs, chemicals and pharmaceuticals, handicrafts, electrical machinery, textile yarns and cotton fabrics, IT products and services, consumer durables, processed and semi-processed food items, mineral and mineral products (including iron ore), marine food, fruits and vegetables and stones and other construction materials.