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China, India may not reach bilateral trade target in 2015, consultancy

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2015-07-24 GMT+8:00

BEIJING, July 24 (Xinhua) - China and India are unlikely to reach the target of 100 billion US dollars of bilateral trade amount in 2015, according to Li Jian, chief executive officer with a Sino-India business consultancy Draphant Group. 

Bilateral trade between China and India rebounded to 70.59 billion US dollars in 2014 after consecutive decrease in 2012 and 2013, according to data with China's customs. 

Increasing costs of China-made products is the cause behind the lagging bilateral trade in the first place, said Li, speaking at an India-themed business seminar on Friday.

Li noted that significant improvement of Indian manufacturing capacity resulted to slow growth in bilateral trade.

Artificially low prices in customs clearing, trade via the third country or region as well as substitution effect of direct investment also contributed to slow increase of bilateral trade.

In the past two years, direct investment from China to India grew around four times and exceed accumulative outbound investment to India in previous 13 years, said Li.

China's enterprises are able to participate into India's infrastructure and manufacturing sector amid India's launch of "Made in India" drive, according to Chitrangna Singh, second secretary of trade and commerce with the Indian embassy in China.

It's estimated that China has more than 500 enterprises having operations in India in the field of sales, services, purchasing, production, research and development as well as investment.

Higher import tariff is another reason for foreign companies to invest in India rather than exporting goods to the country, according to an industry insider. (Edited by Liu Yanan, liuyn@xinhua.org)

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