Kolkata, Jan. 21

In 2008, China emerged as India's largest trading partner, surpassing the US, according to Mr Mao Siwei, China's Consul-General in Kolkata. Quoting statistics from China's Customs, Mr Mao said the size of bilateral trade reached a historical level of $51.8 billion in 2008 compared with $38.6 billion in 2007.

Between January and November 2008, the US-India trade amounted to $41.5 billion compared with $41.6 billion in the whole of 2007.

Describing the growth of trade between India and China, "a great achievement", Mr Mao pointed out that 10 years ago, i.e. in 1998, the bilateral trade amounted to less than $2 billion. He was addressing an international steel seminar organised here on Wednesday by Steel Scenario, a journal on steel industry, in partnership with Sinosteel India Pvt Ltd.

The steel industry, according to the Chinese Consul General, will take a lead in further development of economic relations between the two countries. This would happen because India’s exports of iron ore to China accounted for more than 20 per cent of China's total iron ore import.

At the same time, China accounted for the bulk of two million tonnes of coke imported by India's steel industry. Also, China was poised to meet India's growing demand for steel estimated at 200 million tonnes (mt) by 2020. Currently, India produced 53 mt, while China 500 mt. "China has reached production saturation and to reserve steel production capabilities, the Chinese steel industry needs to go abroad," he added. "The near future will see that the co-operation in the steel industry will benefit each other in a big way."

(Courtesy: The Hindu Business Line, January 22, 2009)