Indian companies need to localise in China and become more creative in their operations in the country if they wish to correct flaws in India's trade basket, according to Indian ambassador to China, S Jaishankar.
Jaishankar pointed out that commodities and raw materials formed three-fourth of Indian exports to China leaving little room for manufactured goods and services.
Jaishankar who was speaking at an India-China Business Seminar in Chengdu, capital of the province of Sichuan in southwestern China today, said that bilateral trade between the two neighouring countries would touch $60 billion in 2010 after surpassing the target of $40 billion.
On the need to localise, Jaishankar said, "Indian companies must appreciate that they will also have to localise. It is only then that they can address the demand of being readily available and overcome pre-established vendor loyalties."
Citing the examples of Thermax, L& T and Videocon, he said it was important to begin manufacturing in China to get the right cost quality mix. Thermax, L&T and Videocon have taken the manufacturing route for their operations in China.
He added that Chinese businessmen believed that Indian products are not adequately competitive in China or that Indian companies have not devoted sufficient energies to make an impact on the market, he said.