Small units in India and China join hands for biz, technology

Indian and Chinese SMEs are expected to work closely in sectors like cosmetics, rubber, plastics and textiles.

The trade deficit with China stands at USD 36.21 billion in 2013-14. This can be reduced to sustainable levels through more exports from India to China as well as China investing in building manufacturing capacities in India, Assocham said. 

According to an Assocham study, China ranks 31st among countries contributing foreign direct investment (FDI) to India. FDI inflows from China to India currently stand at USD 0.575 billion while those from India to China reached USD 0.898 billion. 

Bilateral trade between India and China reached USD 75.5 billion in 2011-12 with trade deficit of about USD 40 billion. 

"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," Assocham Secretary General D S Rawat said. 

The MoU was signed by Rawat and Wu Xiaochun, Director General of SME Bureau China here.