Decline in global economic scenario has led the Indo-china bilateral trade sliding down in the first half of this year. During the first half of 2012, the bilateral trade volume was recorded at $32.4 billion, down by 3%. While, the investment from China to India was $15 million, down by 37%, the project contract volume was less than $2 billion, down as much as 83%.
The strength of China is comparatively strong in tourism and transport, while India’s advantages are software, IT, finance and insurance. The two countries are having plenty of opportunities to step up trade and investment, particularly in sectors such as construction, IT, pharma and energy in the long run.
Construction is a major sector for bi-lateral engagement between the two countries. In China the most favoured factor was labour cost advantage, but now there the labour cost is more than India.
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