In a further boost to China – India trade ties, New Delhi announced plans to set up an economic wing at their Embassy in Beijing in the next six months.
The agenda of the economic wing will be different from that of the existing commercial wing which has a team each at the Indian missions in Beijing, Shanghai and Guangzhou and is solely responsible for enhancing bilateral trade.
According to diplomatic sources, the economic wing, composed of eight posts will be responsible to enhance the negotiating capabilities of the mission, help in coordination on issues relating to foreign investment by working together with various ministries and departments in the Chinese government such as Finance and Planning Commission. Duties of the wing will include, identification of new areas of cooperation in business and trade, promotion of exports of Indian goods in China as well as financial and technical collaboration between Chinese and Indian firms.
The wing will also be responsible for macro-economic coordination and the G-20, foreign investment, multilateral and bilateral borrowing/lending and financial sector developments in China and the Asia-Pacific region and thereby play an effective role in promoting India-China cooperation in large infrastructure projects.
Global analysts see the potential for trade within intra-emerging economies to be gigantic. China-India bilateral trade in the first half of 2010 rose to US$32 billion, from US$43 billion last year, right on course for the years target of US$60 billion. China-India bilateral trade has risen significantly in the past few years from US$3 billion in 2000 to an impressive US$52 billion in 2008. Chinese exports to the emerging world accounted for about 9.5 percent of gross domestic product in 2008, compared with 2 percent in 1985. India’s jumped to 7.3 percent from 1.5 percent in 1985.
The BRIC economies together hold a 13 percent share of world trade and have been responsible for about half of global growth since the start of the financial crisis in 2007. The BRIC economies now account for about 30 percent of global final consumption, about the same as the U.S. and up from 10 percent in 1990. The Geneva-based World Trade Organization estimates intra- emerging market trade rose on average by 18 percent per year from 2000 to 2008, faster than commerce between emerging and advanced nations. It totaled US$2.8 trillion in 2008, about half of emerging-market trade with all nations.