MUMBAI: Bilateral trade between India and China is expected to touch the USD 60-billion mark by the end

of this year, a senior Chinese diplomat said today. "We expect our bilateral (India and China) trade to touch the USD 60-billion mark by December this year," Chinese consul general Wang Donghua told PTI on the sidelines of a retail products' exhibition here. The Chinese diplomat said that though there was a decline in trade volume because of the global meltdown, it was expected to rise again in the near future. "Trade had come down because of the downturn in the global economy. In 2008, our bilateral trade stood at USD 51.47 billion. But it declined to USD 43.3-billion in 2009. We expect it to rise to USD 60 billion this year," Donghua said. The Chinese consul general said that India-China trade would not be affected by certain differences between the two countries. "There could be some disputes between the two countries (India and China), but I am optimistic that it will not affect trade relations between us," Donghua said. He was of the opinion that India and China should stand by each other in trade-related matters as both were in a similar stage of development. "China and India should complement each other as they are in a similar stage of development. Trade relations between us is very healthy and we expect the same kind of co-operation in the future too," Donghua said. A good trade relationship would benefit both countries in the long run, he said. "It will be a win-win situation for both countries, especially when the proximity of the two countries is taken into consideration. Trade will benefit both the countries in the long run," he said.
Trade started looking up and from a bilateral trade of few million USD in the 1990s today the bilateral trade is breaking all the projections and is steadily touching USD 60 billion (trade volume on papers). Initially India had held a positive trade balance with China which is slowly turning into a bigger negative trade balance. This is because of diverse number of reasons and this behavior should not create a hurdle or a negative impact on the bilateral trade of the two countries. One of the major reasons which can be cited is the 14 years hiatus in the opening up of the economies of the two countries and definitely the political structure of the two countries which can be again discussed and dealt deeply in separate sections in this forum itself. We should take this surge forward and continue the positive frame work of the economists strengthening the economic relations of the two countries the era is of economic cooperation between the two giants and not economic rivalry and this will usher both the countries and its people into the Golden Age once again. The pre-recession period for the bilateral trade can be viewed in different periods as below: 1960 1990 Complete lull, negative sentiments, near to nil trade relations

1990 2000

Negatives turning into positive, growing role of economists and economic activities in the global arena, rising optimism with growing China, opening up of Indian economy, increasing confidence and growing trade relations Extremely jubilant trade relationship with cumulative growth of over 43% yoy on bilateral trade, increasing consumer and economic confidence, increasing roles played by business and economic thinkers, a need of inclusive growth being identified and for the first time a confidence on the two Global Giants Increased confidence in the two economies as both India and China (though due to divergent reasons) have countered the recession effectively and both have shown recovery. Trade has been affected but it has not affected the sentiments of the policy makers and the common man which shows a bright future for the bilateral trade relations between the two countries even though regional issues are played up Economic sense will prevail and the policy makers have understood that growth and development can be guided through correct economic policies which will be the drivers of growth in future and in this scenario growth cannot be achieved by sidelining the bilateral trade between the two countries. The trade volume is expected to reach USD 100 billion by 2011.

2000 2009

Recession

Post recession

Till recession, India has been primary and raw material or basic goods supplier like iron ore, minerals, soda ash etc where as China has been a supplier of value added products and manufactured goods. While China can offer value added products at competitive prices India can offer its services sector. Before recession there was a period of skeptism for Chinese products but with the right policy direction China is rebranding its quality image. Today, China offers some of the best quality products which are not known to the common man in India and to many business houses as such. The major reasons being language barrier as well as cultural barrier and not having the requisite know how of doing business in China. Now coming to the on ground realities in the trade relations and trade confidence, we are seeing an upsurge in the demand for Chinese products. When I meet people visiting China the first time, they all have the same common feelings; China means poor quality products, China means complication etc., and lots more of misconceptions and poor information. But the same people when are taken around, they are completely changed and we see a paradigm shift. China can spoil you for choice and variety. Similar is the case when my friends and business leaders travel to India for the first time. Both cannot miss the huge potential which is lying unattended and untapped and there is an eagerness on both the sides to capitalize on this. The need of the hour is a clear route of correct information for the Chinese and Indians one common thing cannot be missed out; both the people value each other and there is an immense respect for each others culture and a clear vision that the countries are going to be the behemoths in future. The sentiment has to be kept up and people like us should take the lead in channelizing a correct insight into each others culture, society and economy; imbibing the best of the both.

At the end, it can be concluded that the Indo-China bilateral trade steam will be pressurizing more and the trade will increase more vehemently considering the huge combined markets of both the countries. The need of the hour is identifying common grounds and capitalizing on

the same and happy to note that our economists and business thinkers are going ahead in this direction under able leadership from the trade associations and groups like CII from India and provincial trade facilitating bodies of China. While India is on its route to become the brain of the world, China has already established itself as the manufacturing base and both together will be the future undoubtedly.

Obstacles Remaim for Fast Food Chains in India Successful fast food chains need to understand the obstacles in their way

Real estate poses one big problem. Large, crowded Indian cities provide few suitable spots for restaurants. And the local competition isnt anywhere near close to rolling over. Along with local street vendors, there are a growing number of Indian fast food restaurant chains opening as well. Many of the latter specialize in serving up Indian and Asian dishes. And to many of the locals, thats much more appealing than spiced up versions of western foods.