labels: rbi, economy - general
China is third-largest destination for India's merchandise exports: RBI governor news
19 September 2006

Mumbai: China has emerged as the third-largest destination for India's merchandise exports after the US and the UAE, Reserve Bank governor Y V Reddy said in his address to said at the G30's International Banking Seminar in Singapore.

Nearly 46 per cent of India's total exports were destined for Asian countries, and Asia accounted for 45 per cent of its total non-oil imports during 2005-06, he said.

India's merchandise (non-oil) trade with Asia has increased from $29 billion in 2000-01 to $91.5 billion in 2005-06 – with an export component of $47.2 billion and an import component of $44.3 billion.

Asia, he said, now accounts for a major share of India's merchandise trade and, in terms of non-oil imports, China has become the largest trading partner for India.

"China and India are not only helping the global economy in producing low-cost goods and services but are also rapidly growing markets in their own right, with a huge demand for consumer and capital goods produced all over the world," he told participants at the seminar, hosted by the Monetary Authority of Singapore.

With the expansion of trade with Southeast Asian countries and an increased participation as a formal dialogue partner of ASEAN, India is also keen to expand its participation in Southeast Asian and Asia-wide institutions, the RBI governor said in a statement.


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China is third-largest destination for India's merchandise exports: RBI governor