Encyclopedia of India–China Cultural Contacts v1.c4.s2.154

v1.c4.s2.154

One of the most significant aspects of the relations between China and India in recent times has been the spectacular increase in economic and in particular commercial interaction. Direct trade was resumed in 1977 and agreements were signed to enhance trade and commerce between the two countries, but the total trade volume remained under US$ 3 billion in 2000. However, this figure soared astronomically to over US$ 60 billion by 2010, making China India's largest trading partner and making India China's seventh largest export destination. This marked a new phenomenon in the relations between India and China in modern times. The main exports from India to China are iron ores, slag and ash, cotton, yarn and fabrics, copper, gems, chemical products, etc. China has mainly exported nuclear reactors and boilers, electrical machinery, iron and steel, organic chemicals and fertilisers and so on. The balance of trade is in favour of China at present. Chinese investments in India amount to over US$ 300 million, while Indian investments in China are over US$ 430 million. A large number of Indian companies have set up their offices or branches in China including TCS, Wipro, Infosys, Dr Reddy's, Reliance, NIIT, Binani Cement, Mahindra & Mahindra and so on. At least 10 Indian banks have established branches in China. Similarly, Chinese companies like Huawei Technologies, ZTE, Haier, Sinosteel, Sino Hydro Corporation, Baoshan Iron & Steel Ltd. and so on, have set up base in India. The possibilities of setting up industrial parks by China in India are also being explored.