Indian companies gearing to enter China

Monday, 12 May 2003, 19:30 IST
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NEW DELHI: The world's second most populous nation is seeking markets and business opportunities in the world's most populous country. A growing number of Indian companies are firming up plans or trying to set up manufacturing base in China or outsource products to cater to the vast Asian and third country markets. Murugappa Group, Sundaram Fasteners and several auto component manufacturers are among those companies who have lately finalized steps to have a manufacturing base in China. Capitalising on this interest, the Confederation of Indian Industry (CII), one of the leading business chambers, is planning a first ever 'Made in India' exhibition in Beijing from October 16-19 to help companies showcase their products and services. Simultaneously, it is working on starting an 'India Club Shanghai' to help member companies set up permanent exhibitions at Shanghai Mart, a major commercial complex where year-round buyer-sellers meets and exhibitions are held. Shanghai Mart is also to be the venue of CII's China office, which was originally slated to open June 1 but is now likely to be delayed till the threat of killer virus SARS persists. "Basically SARS has pushed back our plans to open the office in China. Now we are looking at opening an office in July or August," Piyush Behl, senior director of CII, who is slated to head the China office, told IANS. With the assistance of its international partners, the China Council for Promotion of International Trade (CCPIT) and China's Ministry of Commerce, both of which have offices in all provinces, CII is planning to help provide linkages to companies in both countries. "Interest of Indian companies is beyond doing trade with China. They are interested is setting up a manufacturing base there, outsourcing products and setting up manufacturing units there to tap the domestic, Indian and third country markets," said Behl. Going by the initial industry response to the proposed 'Made In India' exhibition, over 100 firms are likely to participate while a 100-member official delegation are expected to visit China during the event. This would include chief ministers of some of the participating states. Behl said the 'Made in India' exhibition would showcase India's expertise and products in many sectors ranging from information and communication technologies (ICT), biotech and pharmaceuticals, textiles, chemicals and plastics, and tourism. "These are sectors making strides over the last few years," he said Behl. With a 38 percent jump, India-China trade in 2002-03 reached $5.2 billion, with Indian exports accounting for $2.3 billion. Going by the 19 percent rise in Indian exports to China in January and February due to a high $94 million steel exports, CII is optimistic that bilateral trade this year is slated to cross $7 billion. The target is to reach $10 billion trade by 2005. "For wider exposure, alongside the exclusive exhibition of Indian companies, another India-China Hi-tech Show is being planned in which Chinese firms would be invited to participate along with Indian companies in ICT, biotech and pharma sectors," said Behl. With China having according India the status of approved destination, tourism is one area where state governments and companies see tremendous opportunity. Already, "the tourism ministry has signed up to become a primary member of India Club Shanghai and use part of the 600 sq metres exhibition space we have booked at Shanghai Mart to showcase tourism products," said Behl. For companies not keen to have a permanent exhibition in Shanghai, CII is offering a secondary membership to help them access flow of information on investment and trade opportunities. There is plan afoot to provide subsidized membership to smaller companies, said Behl.
Source: IANS