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India-China trade hits all time high of $73.9 billion in 2011
- India-China bilateral trade hit a record $73.9 billion last year ($12.2 billion increase in 2011), but the ballooning trade deficit in Beijing's favour rose to over $27 billion, raising concern among Indian authorities.
- Most important thing is that the bilateral trade is growing well despite the global economic downturn
- In this regard, various campaigns organised by the Indian Embassy to push IT and Pharmaceutical exports to China.
- Chinese officials have been acknowledging India's concerns over trade deficit and the issue was expected to figure in detail in India-China Trade Ministers talks during the BRICS Commerce Meeting on March 28 in New Delhi.
- The Indian exports, mainly composed of primary products and commodity sector, increased despite the decline of iron ore exports, which dominated exports to China for long due to ban on mining in Karnataka and Goa
- The share of iron ore in the basket of Indian exports to China has dropped to 41 per cent in 2011 compared to 54 per cent in 2010 and 55 per cent in 2009
- Also the other reason could be that China is diversifying its spot iron ore purchases away from India, largely in favour of South Africa
- India's cotton, yarn and fabric exports to China have seen a growth of 49 per cent
India needs better transparency, governance: E&Y survey
- India remains a good destination for investments but it needs to strengthen governance and transparency to become more attractive for foreign investors, says an Ernst & Young survey.
- India remains a good destination for investments but it needs to strengthen governance and transparency to become more attractive for foreign investors
- The survey of over 500 foreign investors by global consultancy E&Y showed that India needs to focus on improving its current state of infrastructure and governance.
- Nothwithstanding the global economic uncertainties, E&Y said that foreign investors see India as an attractive investment option.
- The findings come against the backdrop of slowing economic growth and concerns about sluggish investments in the country.
- The overall number of FDI projects rose 25 per cent to 864 (worth $50.813 billion) in 11 months to November 2011, up from 691 projects (valued at $44.874 billion) in 2010.
- "India's domestic demand-driven growth model is acting as a catalyst for attracting foreign investments into the country,"
