Several Indian companies - especially in the IT and pharma sectors - are already doing booming business in China. According to experts, Indian companies could also explore sectors like ITES, financial services, consumer goods, auto and auto components, oil and gas, medical equipments and food packaging equipments.

The problems are linked to language, lack of clarity regarding domestic regulations, red tape, lack of proper protection for intellectual property rights, and unavailability of large number of skilled labor.

Trade between the world's two most populous countries this year touched a meagre $5 billion in the first nine months of 2003, which is less than one per cent of China's total trade volume. But this volume represented a huge 85.3 per cent rise over the same period last year. The trade currently is slightly in India's favour.

Exports of machinery and vehicles soared nearly 60 per cent to about $300 million. China shipped some $247 million in chemical products to India, up 22 per cent, and textile exports rose 31 per cent to $247 million. India's steel sales to China rocketed to $852 million so far this year.

During Vajpayee's visit, China pledged an investment of $500 million for infrastructure development and resource building in India.

Text: Shishir Bhate

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