Greater Indo-China trade volumes to boost SMEs on both sides

A senior diplomat of China recently revealed that the two-way trade between India and China will reach the US$60-billion mark by December 2010. Enhanced trade volumes between India and China are expected to bolster commercial relations and also open up new avenues for SMEs in both the countries.

Although Indo-Chinese trade volumes had plunged to US$43.3 billion in 2009 due to the recessionary pressures, things have improved following resurgence in the global market scenario.

The bilateral strategic partnership between India and China is bound to be strengthened further, owing to the large number of Indian SMEs that are foraying into the Chinese market. With skilled human resources and software excellence as the forte of Chinese players, Indian SMEs are planning to ink several mergers and acquisitions (M&As) with their Chinese counterparts to harness their manufacturing prowess and remain competitive in the global market.

Increased interaction between Indian and Chinese traders will also facilitate greater exchange of technical know-how. Growth in bilateral trade can also help Indian firms to form alliances as well as enter into partnerships with their Chinese counterparts.

Indian SMEs can also acquire information about manufacturing practices and new technologies via collaborations with Chinese firms. The SME sector of India can also explore possibilities for enhancing trade in key sectors of China such as textiles and apparels, leather, chemicals and dyes, marine products, tea and coffee.

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