Delhi: Indian and Chinese SMEs are expected to work closely in sectors like cosmetics, rubber, plastics and textiles, while also strengthening their manufacturing and technological abilities as a part of the five pacts inked today between Assocham and SME Bureau China.
India's trade deficit with China stood at USD 36.21 billion in 2013-14, but this can be reduced to sustainable levels through India increasing exports to China, as well as China investing in building manufacturing capacities in India, said Assocham.
Assocham held a summit to promote Chinese companies to invest in India, with major players such as Huawei, ZTE, Haier, Sino Steel, Lenovo, Beijing Automotive Industrial Corporation, Xindia Steel and SANY making their presence felt.
The two sides also focused on strengthening smart manufacturing, exchange of solar energy and green house technologies along with railway infrastructure, supply station buildings and escalators for railway metro stations.
Bilateral trade between India and China reached USD 75.5 billion in 2011-12 with trade deficit of about USD 40 billion.
"With the growth in bilateral trade between India and China in the last few years, many Indian companies have started setting up Chinese operations to service both their Indian and MNC clientele in China," said D S Rawat, Assocham Secretary General. "India and China will identify the business opportunities in the small and medium enterprises (SMEs) segment across wide range of sectors from agricultural products to textiles and machinery."
The areas identified for collaboration include processed food, cosmetics, rubber, plastics, textiles, machines for garment industry, and small scale plants for a range of consumer durables among others.
The MoU was signed by Rawat and Wu Xiaochun, Director General of SME Bureau China here.