China may not harm its big stake in Indian market: Assocham

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SME Times News Bureau | 29 Apr, 2013
China has a big stake in India's growing market which it would be reluctant to harm industry body ASSOCHAM has said.

"Chinese stake in the growing Indian market is increasing massively and the current annual trade surplus of over $40 billion may touch $44 billion by the end of the current year, " ASSOCHAM said Saturday in a statement.

"It is in the best interest of the two neighbouring countries that their relations improve and are cemented through expanding commercial engagement," the industry lobby said in a context of the standoff on the border between the two countries.

China accounts for over 11 percent of India's total imports, making it a high stake commercial interest for the neighbouring country.

"At a time when the Chinese economy, like most other economies of the world, is slowing, its exports to India would be of vital interest to the Chinese dispensation.

"In a way, the economic engagement is the best way to bridge all other differences," ASSOCHAM said.

The industry body said it is looking forward to the India visit of the Chinese Prime Minister Li Keqiang next month and is confident that the two countries would be able to resolve their strategic differences, including that of the border.

Pointing to the trend in bilateral trade during 2012-13, when China ran a trade surplus of $40 billion, ASSOCHAM asked for the matter to be raised again with the Chinese leadership.

“Net-net, it is more in the interest of the Chinese to stay commercially engaged maintaining the best of strategic and political relations," ASSOCHAM said.