Remarks of the Hon’ble Minister of State (Independent Charge) for Food Processing Industries at the Western China International Fair

October 22, 2010

            It is a great pleasure to join all of you at the first India-China Business Forum that is taking place as part of the Western China International Fair in Chengdu.  Let me at the outset recognize the initiative of the Sichuan Provincial authorities and the Embassy of India in China in organizing this event.  The WCIF is an established fair but the participation of such a large number of Indian companies in it and the organization of this seminar have given it a direct relevance to the India-China relationship.  This is particularly appropriate as we mark the 60^th anniversary of the establishment of our diplomatic ties.    

2.         The growing economic cooperation between India and China has been the defining characteristic of the new phase of the relationship that began two decades ago.   From a trade turn over of less than US $ 3 billion just a decade ago, we are looking at a prospect of achieving our agreed target of US$ 60 billion this year. Apart from trade in goods, we are also witnessing an increasing trade in services, growing investments, more collaborative commercial research and product development  as well as stronger partnerships between our leading companies.    Indeed, there is every possibility that our economic relationship can emerge as one of the leading ones in Asia, possibly even in the world.   

3.         Much of the rapid growth in our trade can be attributed to the openness with which Indian companies have approached opportunities of partnership with their Chinese counterparts.   In a number of sectors, they have found the competitiveness and efficiencies of Chinese products and processes to be attractive. As a result, India’s imports from China have surged in recent years.  We are now poised to take that cooperation to a new level with Chinese companies preparing to support their sales in India through a local presence.  Infrastructure demands in India offer a particularly strong prospect for expansion of China’s economic activities. We would like companies that make commitments to India in our market.  

4.         In contrast, the Chinese market has been more challenging and Indian companies are still struggling to make their presence felt.   There is clearly a need to encourage greater awareness of Indian capabilities in different fields and to promote more brand building.   It is precisely for that reason that the presence of 35 premier companies at the WCIF today is an encouraging development.    It is an indication that Indian industry is increasingly serious about the world’s second largest economy.    More Indian companies are willing  to take the risk of establishing operations in this new environment and I am informed that their numbers have been steadily growing.  

5.         Among the Indian operations currently in China, we have some success cases that we hope will be an inspiration to the others. However, the overall picture is still one of regulations, policies and practices that restrict market access. What we need is greater encouragement from the Chinese central and provincial authorities as well as a more open attitude on the part of Chinese companies.    We hope that they appreciate that a fairer trade picture would be in the long term interests of China itself.  

6.         As the Minister in charge of food processing industries, I have a particular interest in the prospects of our cooperation in food processing and agriculture.  We have been negotiating for a number of years for market access for eight vegetables and five fruits.   Pest risk analysis and technical exchanges are taking place but need to be expedited.  The export of basmati rice awaits the expeditious completion of technical procedures.  In the case of bovine meat to China, we hope that in the light of the changed situation in India, the current ban would be re-examined.   Our two countries can also benefit by an exchange of best practices in agriculture, food storage and food processing. This is already begun to take place and during my visit, I look forward to interacting with China’s food processing industry both in Sichuan and Beijing.   

7.         At a broader level, the progress made by our information technology industry in China is being closely watched back at home.  As an area where our global competence is widely acknowledged, its success in China obviously will reflect the openness of the market.   Our message is that the standards, record and international networking of Indian IT industry can help position Chinese companies globally.   It is encouraging that in today’s event, a special focus is being given to IT cooperation.  The Sichuan Government has been particularly active in promoting collaboration in this area and I commend them for their efforts.  

8.         Pharmaceuticals is another sector with a strong potential for business.  Indian industry has the branding, standards, knowledge and contacts that make it a valued partner.  If the Chinese market were more open to Indian pharmaceuticals, it would certainly encourage more localized production and joint ventures.  Indian engineering companies are also looking for opportunities in China and I hope they too will receive a fair hearing from their counterparts.  

9.         Today’s event is an important milestone in our quest to expand the India-China economic partnership.  I thank all of you for your participation and for your presence today.