NEW DELHI: In the last five years, steel exports from India to China have grown more than hundred-fold: From $5 million in 1999, $20 million in 2000, $64 million in 2001 and $262 million last year, Minister of State for Steel Braja Kishore Tripathy told the Lok Sabha in a written reply Monday. Industry sources attribute the increase in Chinese demand for steel in part to the hectic construction activity under way in Beijing, which is to host the 2008 Olympics Games. In May 2002, the steel ministry had led a delegation to China to explore areas of cooperation in the iron and steel sector, including sourcing of raw materials and promoting exports. Indian companies are exporting items like special steel, hot and cold rolled coils, galvanised coils and pre-painted coils. To further push exports, the ministry of steel is working with the industry body, Indian Steel Alliance, to identify demand in China "and help the industry to adequately exploit the market potential". The minister informed the Lok Sabha: "The Indian Steel Alliance, working under the aegis of the Confederation of Indian Industry (CII), has already initiated talks with the Chinese government and steel companies in China to increase trade between the two countries." The jump in exports have, to a large extent, helped even state-owned steel majors like Steel Authority of India Ltd (SAIL) turnaround and post net profits in the first six months of the calendar year. SAIL has reported net profits of 4.97 billion for the January-June period. In addition to steel, India is studying ways of expanding the export basket with China. "India and China have agreed to set up a joint study group of experts to examine the potential complementarities and draw up a programme for developing trade and economic cooperation for the next five years," said Minister of State For Commerce S.B. Mookherjee in a written reply to the Rajya Sabha. Among the sectors identified for expansion of bilateral trade are ores, cotton yarn fabrics, plastics, stones and precious stones, fish and seafood, fruits and vegetables, iron and steel, hides and skins, organic and inorganic chemicals. Buoyant trade between India and China has raised optimism of the volume doubling in three years to touch $10 billion, far ahead of the targeted five years. According to the latest provisional trade data available for the year 2002-03 (April-February), the total trade for the 11 months was worth $4.2 billion.
Source: IANS