| India is yet to fully tap
the growing Chinese market of engineering goods and machinery
even though the country's machinery exports to the Asian
giant grew by 178 per cent during January-May 2004 to
51.32 million $ as against the year-ago period, a CII
study has said.
India's machinery exports to its neighbour has risen
178 per cent to 51.32 million $ compared to 18.49 million
$ in January-May 2003, the study on 'Export potential
of Indian engineering goods and machinery in China'
said.
China is the world's biggest importer of engineering
goods and machinery with imports of 150 billion $ in
2001-02. However, India's share is miniscule largely
due to lack of understanding about Indian industry in
China, it said.
India exported engineering goods worth $ 76.82 million
in 2002-03, up 80 per cent from $ 42.29 million a year
ago. In machinery, India ranked 33rd with a share of
just 0.11 per cent in 2003 at $ 79 million. In electrical
machinery, it ranked 40th with a 0.04 per cent share
at $ 41 million.
In optical and medical instruments, India ranked 27th
and its share was 0.14 per cent with exports of $ 35
million.
China also offers great opportunity for auto component
sector, the study said, adding while import licence
would be revoked by 2005, import tariffs on auto parts
would be cut to 10 per cent from the existing 25 per
cent in 2006.
China mainly imports machinery goods from Europe, Japan,
South Korea and Taiwan, the study said, adding Indian
industry must conduct market research, take part in
trade fairs, set up joint ventures and establish branch
offices to increase its market share. |
