As two of the fastest growing emerging market economies, India and China together symbolize an economically vibrant Asia. Find out what China’s rapid economic growth implies for India, and more, in the December 2015 issue of the CII Global Watch.

1. FOCUS: CHINA
As two of the fastest growing emerging market economies, India and
China together symbolize an economically vibrant Asia. Both countries
have experienced rapid economic growth outpacing average rates of
growth of developed nations in recent years, with an upswing in trade
and investment. They have also emerged as markets with huge
untapped business opportunities. On account of their rapid economic
progress and growing influence, both countries have also begun to
assume significant roles in global economic issues in recent times.
China and India have worked together to defend common economic
concerns at the WTO, climate change negotiations at the aegis of the
UN, and in the evolving global financial regulatory mechanism post the
financial crisis.
01
Director General’s MessageINSIDE
STORIES
Message from
Indian Ambassador03
Message from
Chinese Ambassador04
Enhancing Indian
Industry's Engagement
with China
Dr Naushad Forbes,
President Designate,
CII and Chairman, CII
International Council
05
06
Policy
Barometer09
Industry
Voices12
CEO Speak:
Dr Pawan Goenka
Chairman, CII Core
Group on China and
President -
Automotive & Farm
Equipment Sector,
Mahindra & Mahindra
Ltd.
DECEMBER 2015
Mr. Narendra Modi, Prime Minister of India at the India China Business
Forum in Shanghai

2. The convergence of mutual interests at global economic multinational corporations production networks to
forums serves as a conduit for smoother bilateral leverage Indian manufacturing for exports to China. This
engagements and also deepens the necessity of will of course involve bringing in substantial changes in
maintaining strong economic ties. Sino-Indian economic the manufacturing ecosystem in India, to make it globally
cooperation is set to scale new heights in the aftermath competitive.
of the recent high level visits of the Chinese President HE
Mr Xi Jinping to India and Hon’ble Prime Minister Shri CII has been actively engaged in promoting Indo-China
Narendra Modi to China. PM Modi’s visit to China in May business ties. The CII led CEOs delegation to China
2015 has imparted significant new dynamism and during the PM’s visit in May 2015, was extremely fruitful.
momentum to Sino-Indian economic engagements. In the presence of the Prime Minister at the India-China
New areas of cooperation are being embraced, including Business Forum in Shanghai, Indian and Chinese
manufacturing, railways, industrial townships, etc, while companies exchanged 24 agreements for cooperation
people to people linkages are being accorded high totaling US$22 billion. CII signed an institutional
importance. agreement with the Provincial Government of Guizhou
for promoting participation of Indian IT companies in local
China is expected to play a growing role in the PM’s IT projects. CII also signed a tripartite agreement with
signature economic initiative “Make in India”. China has Zhisland and Xifu, business institutions in China, for
already pledged US$ 20 billion worth of investments in institutional cooperation in B2B engagements.
India’s infrastructure sector over the next five years.
China has also agreed to set up two industrial parks, one CII has a China Core Group, which focuses on building
each in Gujarat and Maharashtra. The latest Sino-Indian commercial ties and B2B linkages with China through its
initiative aims to raise bilateral trade value to the US$ 100 manifold initiatives. A Report on China prepared recently
billion mark and the two sides have pledged to address at the aegis of the Core Group has made specific
trade barriers through a task force. recommendations on leveraging opportunities with
China. In order to provide further thrust to the economic
The agreements on establishing a provincial partnership engagements with China, CII also recommends creation
between Karnataka and Sichuan and sister-city of a special China Cell cum Knowledge Centre within the
relationships between Aurangabad-Dunhuang, Prime Minister's Office or Ministry of Commerce and
Chennai–Chongqing and Hyderabad – Qingdao are Industry with both Government and industry
welcome gestures. Mr Modi’s announcement of participation, to direct and monitor the achievements of
electronic visas for Chinese tourists to India has been the CII Core Group goals.
another strategic takeaway.
The India-China economic engagement will be one of the
Coming to business specifics, India will need to engage most significant as the two large economies progress on
with China with a definite economic agenda and push for their development paths. We must jointly leverage the
specific actions for market access in certain identified huge opportunities and forge closer business
sectors like IT services, pharmaceuticals, auto partnerships.
components, tourism and entertainment. Around 18
sectors have been prioritized after detailed industry level
discussions for Chinese FDI in areas under capital
goods, specialty products, consumer goods and
infrastructure. Interactions with Indian industry will help in
Director General
detailing sector specific actions to attract Chinese FDI in
Confederation of Indian Industry
these areas. India also needs to look at attracting
Chandrajit Banerjee
FOCUS: CHINA 02
DIRECTOR GENERAL'S MESSAGE

3. FOCUS: CHINA 03
MESSAGE FROM AMBASSADOR
The landmark visit of Prime Minister Narendra Modi to China in May
2015, coming just eight months after the successful visit of
President XI Jinping to India, has provided fresh impetus to the
India-China relationship. The two leaders noted that bilateral
relations are poised to play a defining role in the 21st Century in Asia
and indeed, globally, and affirmed that this constructive model of
relationship between the two largest developing countries and two
major poles in the global architecture provides a new basis for
pursing state-to-state relations to strengthen the international
system.
The all-round expansion of relations is particularly visible in our
economic and commercial engagement as developmental
partnership is a core component of our Strategic and Cooperative
Partnership. India and China are two of the fastest growing major
economies in the world today. Our bilateral trade has grown rapidly
in the last decade with trade volume crossing US$70 billion in 2014.
Chinese investments into India are poised for a major expansion as
major projects have been announced recently and many more are in
the pipeline. The Chinese economy too offers large potential for
Indian exporters and investors across sectors and many Indian
companies have established successful operations in China.
Such two-way investment flows and enhanced access to the
Chinese market for Indian products and services would help to
balance the large trade deficit and make bilateral trade sustainable,
Indian industry can plug into vibrant East Asian supply chains by
leveraging ‘Make in India’ while Chinese companies may look into
investing in India in alignment with their ‘ Going Global’ strategy.
India with its large labour pool, big markets and investor-friendly
environment welcomes Chinese companies in its infrastructure and
manufacturing missions.
I commend CII and its office in Shanghai for partnering with the
Indian Embassy for building mutual synergies between businesses
of India and China I believe that this edition of Global Watch is timely
and provides valuable information and suggestions for further
strengthening our economic engagement.
H.E. Mr Ashok K. Kantha
Ambassador of India to China

4. FOCUS: CHINA 04
MESSAGE FROM AMBASSADOR
I congratulate the Confederation of Indian Industry on this issue of
Global Watch which focusses on India – China Relations.
Bilateral relations between India and China are poised to play a
defining role in the 21st Century in Asia and indeed, globally.
Profound changes are taking place in the global landscape, and the
Asia Pacific is undergoing new developments. China-India relations,
with growing breadth and depth, have gone beyond the bilateral
scope and are acquiring increasing global significance. As major
players, we must take up our due responsibility with a sense of
purpose and mission. As ancient civilizations, we can and should
leverage our potential and contribute our wisdom to regional and
global development.
Commercial and economic engagement has been a core dimension
of the burgeoning relations between India and China, which have
witnessed an all-round expansion in recent years. Bilateral trade has
grown rapidly in the last decade with the aggregate touching $70
billion in 2014. The economic engagement is immensely diverse,
dynamic and vibrant, with new sectors being added continuously,
including renewable energy, telecommunications, and media and
entertainment.
We have only tapped the tip of the iceberg in terms of potential
investment. Given the size of both economies and their global
engagement, investments in particular can reach much higher levels
in both directions and across all sectors.
With growing passion, closer cooperation, and deeper mutual
understanding, our relationship is poised for great success and
mutual enhancement.
H.E. Ambassador Le Yucheng
Ambassador of the
People’s Republic of China to India

5. FOCUS: CHINA 05
VIEWPOINT
ENHANCING
INDIAN INDUSTRY’S
ENGAGEMENT WITH CHINA
The India-China relationship in recent years has attracted
global imagination, not least because both countries are
demographically-dominant and large developing
countries of Asia, grappling with common issues of
poverty alleviation and development. The two
economies have adopted different growth models -
China, which commenced its reform journey ahead of
India, has recorded impressive growth rates for more
than three decades and India too is rapidly catching up.
Inevitably, the economic relationship of the two giant
nations has gathered momentum over the last decade.
From just about $3 billion in trade at the turn of the
century, the countries are now eyeing $100 billion worth
of merchandise trade. However, the imbalanced nature
of this engagement raises issues of sustainability. In this
context, the summit-level engagements over the last
year or so evoke hopes of a more sustainable trade
trajectory. It is noteworthy that Prime Minister Narendra
Modi and President Xi Jinping have met as many as five
times in this period with two bilateral visits as also on the
sidelines of multilateral meetings.
Prime Minister Modi’s visit to China in May 2015 was a
seminal opportunity to discuss economic engagement,
and many new initiatives were decided upon by the two
governments. Interestingly, the PM’s closed-door
interaction with top Chinese companies is said to have
been very encouraging, and we are seeing this translated
on the ground as these large enterprises begin to
develop their India strategies. In addition, at Shanghai,
the PM addressed business communities of both sides,
for which CII had organized a high-level delegation.
Businesses from the two countries exchanged 26
agreements totaling $22 billion on this platform,
including trade, investments and financing.
A key outcome of the visit was the establishment of a
task force that would address market access issues
faced by Indian companies in their sectors of interest.
Several policy matters have been pending with the
Chinese government for protracted periods. For
example, approvals for pharmaceutical ventures in China
take a long time, raising costs for Indian investors,
including for products that are already acceptable to the
USFDA. In the IT sector, preferences for Chinese state-
owned companies discourage Indian companies from
applying for contracts.
Encouraging signs of cooperation are visible in the
agreements inked for railway cooperation, smart cities,
and skill development. The Chinese government
expressed desire to engage in India’s high-speed rail
project and has already commenced training for railway
personnel. It would also take up station modernization in
India. For skill development, a university is proposed in
India with Chinese expertise.
The agreement regarding co-production of films was a
major step forward. India’s media and entertainment
sector enjoys vast viewership across the world, but is
impacted in China due to restrictive policies for foreign
films. The co-production agreement has already resulted
in several film ventures being signed, and this would
hopefully open up the market for more Indian films and
television programs.
Indian companies are challenged by the size and
diversity of the Chinese market as well as language and
regulatory issues. However, they would need to be much
more active in China if the trade balance is to be
redressed. With their successes in other markets, Indian
companies can be confident about their operations in
China as well. CII’s China office in Shanghai can be an
excellent starting point and our China desk in New Delhi
is ready to assist in every way.
As the Chinese economy slows down and the Indian
economy opens up, the two countries can embark on
new economic cooperation paths. We look forward to a
robust and well-rounded economic engagement with
China in years to come.
Chairman, CII International Council
Naushad Forbes
President Designate, CII and

6. FOCUS: CHINA 06
CEO SPEAK
Need to Adopt a “China-Specific”
Policy to Gain Greater Market Access in China
Q. Could you share your views on the current
patterns of India’s trade with China?
A predominant feature of bilateral trade has been the
rising trade imbalance with China which raises much
concern. This also induces fears of cheap Chinese
imports flooding the Indian market with adverse effect
on local producers. In fact, Chinese imports have
frequently been the target of anti dumping actions by
India.
There has been a rapid growth in bilateral trade
between India and China over the past decade.
Bilateral trade exhibited a very robust growth during
2003-04 till 2008-09, with remarkable average annual
growth rate of 52.2% – years which were also marked
by high GDP growth rates in India. Bilateral trade shrank
in the aftermath of the economic crisis and has again
picked up. In 2014, aggregate trade stood at $72
billion, of which China’s exports to India crossed $60
billion and India’s exports to China totaled $12 billion.
Despite the pace, the trade engagement has been
relatively small as a proportion of total trade in both
countries. Imports from China constituted 13.5% of
India’s total imports and exports to China constituted a
low 3.8% of its total exports in 2014.
The Chinese President Mr Xi Jingping’s recent
perspective that the two countries should forge a batch
of demonstration projects in areas such as
infrastructure construction like railways and industrial
investment, broaden cooperation in fields such as
services trade, investment and tourism, and gradually
realize a general balance and sustainable development
of bilateral trade indicates that China is sensitive to
India’s concerns over the skewed trade deficit.
While concern regarding Chinese imports and bridging
the trade gap assumes crucial significance, a closer
analysis of the imports from China which are topped by
items like electrical machinery and equipments etc.
reveal that these imports have majorly been used by the
Indian telecom industry and private power producers in
India to meet domestic supply gaps. This also raises the
issue of the necessity to address these supply
constraints to reduce the overt dependence on
imports. While Indian manufacturing needs a revamp,
an option could well be to seek Chinese FDI in these
selective areas.
Regarding India’s exports to China, raw material like
cotton, minerals and metals dominate the export
basket. “Cotton” tops the list as China has a
tremendous demand for raw cotton which cannot be
met from its domestic supplies. Copper imports from
India are also increasing due to China’s fast pace of
urbanization and increased production of electric or
hybrid cars. Of late, a gradual structural shift in India’s
exports to China is also becoming evident with the rise
in exports of items like electrical machinery &
equipment which is one of India’s leading global
exports. However, with the high domestic demand for
raw materials in the Chinese economy, minerals, cotton
and metals may well continue to be among the top
export items from India in the near future. Exports to
Interview with Dr Pawan Goenka,
Chairman, CII Core Group on China and President -
Automotive & Farm Equipment Sector,
Mahindra & Mahindra Ltd.

7. FOCUS: CHINA 07
CEO SPEAK
China are also not consistent with India’s global trade
profile, where engineering goods, agricultural produce
and pharmaceuticals have been making rapid strides.
Q. What are the major road blocks which impede
trade with China ?
Indian exports face restrictive market access in China
due to several non tariff barriers (NTBs). Technical
standards, certification, food safety requirements,
phyto sanitary measures, regulatory practices and
regulations in terms of national treatment pose
problems. In addition, procedures for product and
corporate registrations, delays in obtaining import drug
licences, customs procedures, re-inspection,
packaging regulations, banking procedures for
remittance are related hurdles. For Indian producers,
these NTBs affect prospects of key export products like
fruits and vegetables, non basmati rice,
pharmaceuticals etc which have great export potential.
The Chinese language also poses a problem for Indian
traders. This situation could be easily remedied if the
rules and regulations were published and updated in
English. Moreover, Indian companies in IT,
pharmaceuticals, media etc are encountering a lot of
hindrances to get the requisite foothold in the Chinese
market. These issues are not specific to Indian
exporters but impact all China’s trading partners; Indian
exporters must make greater efforts to tap the Chinese
markets.
Q. What are your suggestions for enhancing business
partnerships with China?
It is my understanding that India’s importance for China
is likely to increase substantially in the future – both as a
market and an investment destination with the need for
China to diversify its export markets and the strategic
and geo-political importance of Sino-Indian ties. We
need to leverage this opportunity and firmly push for
sector specific market access particularly in sectors like
pharmaceuticals, auto components & light engineering,
media and entertainment, tourism and IT services. A
“China Specific Strategy” needs to be adopted for
greater market access.
Indian pharma players for instance need to focus on
‘differentiated generics’ and specific molecules which
are not available in China but can be provided by Indian
companies at competitive prices. Some of the
Members of a CII CEOs Delegation at a luncheon interaction in Shanghai

8. FOCUS: CHINA 08
CEO SPEAK
Q. Can you tell us something about CII’s current
engagements with China?
CII has been very proactive in helping to build business
links with China. The CII China Core Group helms the
spectrum of initiatives and our office in Shanghai is a
nodal point for Indian and Chinese companies,
undertaking key networking activities. CII has
established institutional partnerships with over fifteen
organizations and industry chambers in China including
the China Council for Promotion of International Trade
(CCPIT) and All China Federation of Industry &
Commerce (ACFIC). CCPIT is CII’s major MoU partner
in China and CII also works very closely with the
provincial offices of CCPIT.
The CII led CEO delegation to China during the visit of
the PM in May this year, was a huge success. The deals
signed during the PM’s visit involved major Indian
industries from the Indian and Chinese side and
covered a wide range of industries including electricity,
steel, solar energy, port development and film
production. CII takes part in trade fairs in China
including the global services expo, while also inviting
Chinese companies to its own exhibitions, seminars
and conferences. CII also participated at the 2nd China
Outbound Forum which was held during November 20-
22, 2015 in Sanya, Hainan, China. We are now
strategically taking up cooperation between the states
of India and the provinces of China as we believe that
this localized interaction would be central to greater
economic engagement going forward.
challenges faced by Indian IT companies in China may
be addressed through measures like identification of
select pilot projects which can be jointly executed with
Indian companies to showcase India’s technological
expertise and commitment. Collaboration in
development of a platform for collecting information
may also promote business development. Improved IP
laws will encourage Indian IT companies to bring
proprietary products/ content to the market.
Government to government exchanges in some cases
may help to ease regulatory constraints. We need to
coherently work both at the Government and Industry
fronts to realise the opportunities. I have already
mentioned the necessity of attracting Chinese FDI in
select sectors. .
Mr. Sumit Mazumder, President, CII greeting
Mr. Li Keqiang, Premier of China

9. FOCUS: CHINA 09
POLICY BAROMETER
Key CII Recommendations to Enhance India China
Economic Relations
The CII China Core Group has studied in detail the trade and investment engagement of the two countries. Observing that
India’s imports continue to be dominated by high-skill and technology intensive manufacturing products and its exports by
primary goods, it points out that China’s cost and pricing advantage with respect to India has climbed down in recent years and
would continue to erode as costs in China rise. At the same time, India is likely to become an increasingly important market for
China and its imports could rise to as much as $87 billion by 2018 from the current $60 billion.
Attract Chinese FDI
Around 18 high priority sectors have been identified for attracting Chinese FDI under the categories: Capital Goods and
Machinery, Core Infrastructure, Consumer Products, Speciality Products and Commodity Products
• For attracting Chinese FDI in the shortlisted sectors, a specific proposition for targeting key companies needs to be
developed based on an understanding of the nature of ownership and its existing manufacturing network, calling for micro-
targeting of companies
• Further detailing on sector specific actions will be required in each of these sectors through interactions with the Indian
industry.
Push for sector specific market access in China
across five identified sectors
Pharmaceutical & Life
Science
• Indian Government may present a case to China for ‘fast tracking’ approvals of select
molecules by reputed Indian pharma companies
• Favorable pricing and hence lower healthcare costs for China can be emphasized
• China can set up its drug approval agency in India to fast-track approvals

10. FOCUS: CHINA 10
POLICY BAROMETER
Auto components and
light engineering
• India should focus on select components with design capability and price
competitiveness
• Companies could target specific Chinese OEMs with interest in sourcing from India
• Indian companies can also target local Chinese auto component manufacturers within a
JV partnership and look at supplying to both the Indian market and export to China.
• The Indian government could include auto components in its Foreign Trade Policy
schemes
Media and entertainment • The two countries have signed a landmark co-production agreement and several films
are already in advanced planning stage. Film companies could invest in relationship
building in China through collaborative productions, selecting appropriate customised
content, negotiating quotas and undertaking specific marketing campaigns
IT Services • Substantial push from the Indian Government is required to get China to provide
preferred access to Indian companies in SOE (State Owned Enterprises)
• In addition, there needs to be improved awareness channels for SOEs to understand
outsourcing knowledge and business process to reduce fear of layoffs
• Indian IT companies must commit to invest in strategic initiatives in China
• Chinese ministries like MOFCOM, MIIT, and MOST must participate in partnership
initiatives taken by Indian industry bodies like NASSCOM and CII
• Movement of Indian professionals to China: There are currently lengthy approval periods
for visas (work permits). As cross-border business opportunities improve, we
recommend shorter approval timelines and longer durations for work permit. To a greater
extent, visa on arrival for Indian nationals travelling to China (and the inverse) would be
appreciated.
Tourism • China is one of the largest outbound tourist markets. India has agreed to provide Visa on
Arrival facility, and is undertaking a Visit India Year in China in 2015 to promote tourism
from China to India. Targeted marketing campaigns, partnerships with tour operators,
and cultural events are being organized. Such efforts should continue at an accelerated
pace, given the large numbers of tourists from China.
Chinese Sovereign Wealth Fund
• India should consider a sovereign-to-sovereign deal with China, inviting capital investment into long term (20+ years)
infrastructure assets in India, preferably as equity
• The return on such investment can be in Chinese currency terms, thus bypassing the US dollar risk, given that there are
several long term infrastructure investment opportunities in India
• Projects like Industrial Parks, Water Supply and Sanitation, Townships etc. could be identified
• Such a capital flow can possibly also be routed through the multilateral BRICS bank.

11. FOCUS: CHINA 11
POLICY BAROMETER
Set up a China Cell cum Knowledge Centre
• A specific cell within the PMO or MOCI, including government and business representatives, may be considered to direct
and monitor the achievement of targets and bilateral negotiations on key products.
• The Cell will be responsible for implementation of the outlined actions emerging from ongoing deliberations between the
Government and Core Group members
• It would disseminate information about China – opportunities, challenges, business practices, taxation issues etc.
• It may organise events which allow Indian and international executives with experience in working and dealing with Chinese
business community to share their experiences
• It would interface with the India Business Forum and the Indian Embassy in China to disseminate information about Indian
businesses and brands
• It could work on developing a program to have high quality interpreters, who are available to serve the Indian Business
Community
Drive changes in Indian manufacturing
and infrastructure
The Indian manufacturing ecosystem needs to be
globally attractive for MNCs to leverage facilities
in India for exports to China. A number of policies
to strengthen the Indian business environment
are needed and the Indian Government is actively
taking these up. Besides this, specific China
related policies may also assist deeper economic
engagement.
• Establish Chinese Investment Parks, possibly
as JVs with their Industrial Park developers, as
per specific needs of Chinese investors
• Key Chinese companies can be targeted
based on nature of ownership and existing
manufacturing networks
• A special cell can be established to encourage
cooperation between the SMEs of the two countries. In this regard, CII has signed an agreement with Alibaba for enhancing
participation of Indian SME in the Chinese marketplace.
• India should enhance capabilities in Chinese language and China studies in general. Teaching of language for business
interaction, translation and interpretation, documentation, etc. can be taken up at an accelerated pace. Youth and academic
exchanges can assist in this effort.

12. FOCUS: CHINA 12
INDUSTRY VOICES
Mr Cyrus Mistry
Group Chairman,
Tata Group
Mr Satish Reddy
Chairman,
Dr Reddy’s Laboratories Ltd
“Prime Minister Modi’s visit to China has redefined the
economic partnership of the two largest and fastest-
growing developing economies in the world. The
Prime Minister personally took up matters of interest
to industry, and as a result, sentiments on both sides
are very positive. We welcome the announcement of a
high-powered joint task force to address the issue of
trade imbalance and to expand bilateral trade and
investment. Recent policy measures and strategic
direction by the government hold the promise of
cooperation in areas including services, technology
transfer, industrial parks and railways while MOUs
signed by companies on both sides signify a new era in
our economic relationship.”
“India has made great inroads into the global pharma
market and is exporting at competitive costs to
advanced as well as developing countries, especially in
generics. However, it exported less than $30 million
worth of pharma products to China in 2014-15. Indian
pharma players need to focus more on ‘differentiated
generics’ for the Chinese market. Specific molecules
with low competitive intensity and other high priority
molecules need to be identified (eg. cancer drugs) in
China. The Indian government should continue to take
up fast-tracking of drug approvals for reputed Indian
pharma companies already meeting USFDA standards.
Chinese FDA should be invited to set up office in India to
enable faster approvals of Indian facilities. This would
help lower costs for Chinese healthcare providers and
consumers.”

13. FOCUS: CHINA 13
INDUSTRY VOICES
“India and China have agreed to set up two Investment Parks for Chinese
manufacturing companies setting up operations in India. This is expected to help
Indian industry, since many goods which are now being imported from China
could be expected to be produced in the country, which in turn is expected
to reduce the country’s trade deficit. Chinese companies evaluating their
investment decision in these Parks will require world class internal infrastructure.
Provision of such state-of-the-art infrastructure through private development will
be a strong first step to demonstrate India's commitment to enable China to
succeed in India.”
Mr G M Rao
Group Chairman,
GMR Group
“While Indian companies are able to migrate their international contracts with
global multinationals in the Chinese market, they are slow in being able to access
the domestic market. CII has taken up issues being faced by Indian IT companies
in China, including limited internal movement of personnel and applying for
contracts with SOEs.”
Mr T K Kurien
Chief Executive officer and Executive Director,
Wipro Limited.

14. FOCUS: CHINA 14
INDUSTRY VOICES
Mr. Dhruv Sawhney
Chairman & Managing Director,
Triveni Engineering & Industries Limited
“Capital Goods sector is a vital part of the economy contributing significantly to
manufacturing output and employment. While India may be lagging behind China in
this area, there is immense potential for growth, especially in specific high value
products with high engineering and design requirements. We need to better
understand the requirements of Chinese customers and the niches where Indian
players can serve China”.
Mr Sunil Lulla
Executive Vice Chairman & Managing Director,
EROS international Media Ltd.
“The Chinese film market is the second largest in the world and slated to cross the US
market by 2017. With over 23,000 screens to showcase films compared to the 4,500
screens we have available to us in India today the China market has great potential. The
few Indian films that have released there have shown great promise although the real
benchmark is what the Hollywood films have been able to achieve in that market.
However, the restrictions on number of international films that can be released in China
is a number as low as 34 including Hollywood films. We recently signed collaboration
deals with China Film Corporation, Shanghai Film Group and Fudan University, all three
Chinese state owned companies to make Indo-China co-productions, cross promote
respective films in both countries and share intellectual property. We hope to launch the
first of the films within these deals in the coming year. This joint promotion of the India-
China co production treaty of 2014, exploring collaboration on the film and television
content front and providing necessary support to Indian industry to organize industry
seminars, trade fairs and award ceremonies, in collaboration with relevant industry
bodies in China, will help the industry to access the Chinese market better.”

15. FOCUS: CHINA 15
INDUSTRY VOICES
S.N.Subrahmanyan
Member of the Board and Sr. Executive Vice President,
(Infrastructure & Construction), Larsen & Toubro Limited (Approved)
“The Indian Government has embarked on an ambitious strategy
to make railways a source of economic growth and has opened up
many areas of railway Infrastructure to FDI. In this, we seek the
partnership and expertise of other countries. We welcome the
multiple areas of cooperation outlined by the leaders of the two
countries during the recent high-level visits. These include
boosting speed on Indian tracks, setting up a railway university,
training for Indian railway personnel, and undertaking studies of
high-speed rail projects."
S. Sivakumar
Group Head - Agri & IT Businesses,
ITC Limited
“One of the key opportunities is export of agricultural products
from India to China. India has significantly expanded its exports of
rice, wheat & wheat flour, tobacco, sugar, meat & marine
products, and fruits & vegetables in recent times. At the same
time, China’s imports of such products from the rest of the world
have been increasing, now touching $100 billion annually. India
could well cater to the Chinese market. However, China has been
slow to accord Indian products the necessary phytosanitary
approvals and permit Indian products to enter the market.
The Chinese government should send a team to India and identify
products that it can import competitively, while according the
necessary market access permissions.”

16. FOCUS: CHINA 16
Source: World Integrated Trade Solution (WITS), World Bank, 2013; Asian Development Bank, Basic Statistics, 2015; China Statistical Yearbook 2014, National Bureau of Statistics, China
FACT SHEET
Table 1: Key Economic Indicators, China
GDP
Population
Technology
Nominal GDP (constant 2005) 5.27
$ Trillion 2014
Real GDP 10.36
$ Trillion 2014
GDP per capita 7,593.9
Current $ 2014
GDP Growth 7.40
% 2014
Inflation Rate 1.99
% 2013
Population 1,367.82
Million 2014
Annual Population Growth Rate 0.49
% 2009-2014
Population Density 142.53
Persons per sq. km of total surface area 2014
Cellular Subscriptions 88.71
Per 1,000 population 2013
Internet Users 45.80
Per 1,000 population 2013
Table 2: Key Trade Statistics, China
Exports
Total 2,209,000
$ Million 2013
Export Growth 7.8%
Top Partners
Imports
Total 1,949,900
$ Million 2013
Import Growth 7.2%
Top Partners
Hong Kong
17%
US
17%
Japan
7%
Korea
4%
Germany
3%
Other,
partners
52%
Korea
10% Japan
8%
Other Asia
8%
US
8%
China
8%
Other
partners
58%
• Coal • Motor Vehicles
• Oil & Gas • Refrigerators
• Cement • Air Conditioners
• Steel • Washing Machines
• Primary Aluminum • Television sets
Key Industrial Goods
2013

17. FOCUS: CHINA 17
Figure 1: India's Exports to China, 10 Year Trend, $ Million
Figure 2: India's Imports from China, 10 Year Trend, $ Million
Source: Trade Figures, Ministry of Commerce & Industry, Government of India
FACT SHEET
6,759 8,322 10,871 9,354 11,618 14,169 18,077
13,535
14,824 11,936
6.6% 6.6% 6.7%
5.0%
6.5% 5.7% 5.9% 4.5% 4.7%
3.8%
23.1%
30.6%
-14.0%
24.2% 22.0%
27.6%
-25.1%
9.5%
-19.5%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
-
5,000
10,000
15,000
20,000
2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
India Exports to China ($ million) Share of India's Total Exports (%)
Y-o-Y Export Growth (%)
10,868 17,475 27,146 32,497 30,824 43,480 55,314 52,248 51,035 60,410
7.3% 9.4% 10.8%
10.7%
10.7% 11.8% 11.3% 10.6% 11.3% 13.5%
60.8%
55.3%
19.7%
-5.1%
41.1%
27.2%
-5.5%
-2.3% 18.4%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
India Imports from China ($ million) Share of India's Total Imports (%)
Y-o-Y Import Growth (%)

18. Source: Trade Figures, Ministry of Commerce & Industry, Government of India
FOCUS: CHINA 18
FACT SHEET
India's Exports to China, Top 20 Commodities, 2014
India's Exports to China, Top 20 Commodities, 2014
Sr No Commodity Exports % share Y-o-Y Growth
($ million) (2014) (2013-2014)
1 Cotton 2,278 19.10% -40.60%
2 Copper 1,891 15.80% 2.70%
3 Mineral fuels and oils 1,292 10.80% 26.30%
4 Organic chemicals 1,045 8.80% 13.80%
5 Salt, sulphur, lime and cement 621 5.20% -8.30%
6 Ores, slag and ash 524 4.40% -66.70%
7 Nuclear reactors, boilers, machinery, etc 500 4.20% 3.40%
8 Plastics 356 3.00% -36.10%
9 Electrical machinery and equipment 280 2.30% -7.40%
10 Animal or vegetable fats and oils 273 2.30% -7.10%
11 Inorganic chemicals 247 2.10% 116.90%
12 Feathers, artificial flowers, etc 163 1.40% -15.00%
13 Aircraft, spacecraft, etc 158 1.30% -61.60%
14 Leather and raw hides 153 1.30% 24.20%
15 Pearls, precious or semiprecious stones 148 1.20% 17.90%
16 Zinc 145 1.20% 47.30%
17 Iron & Steel 118 1.00% -63.30%
18 Fish and crustaceans 118 1.00% -37.40%
19 Oil Seeds, grains and fruit 118 1.00% 454.20%
20 Optical, photographic, medical or surgical instruments 112 0.90% -22.20%

19. Source: Trade Figures, Ministry of Commerce & Industry, Government of India
FOCUS: CHINA 19
FACT SHEET
India's Exports to China, Top 20 Commodities, 2014
India's Imports from China, Top 20 Commodities, 2014
Sr No Commodity Imports % share Y-o-Y Growth
($ million) (2014) (2013-2014)
1 Electrical machinery and equipment 16,742 27.70% 17.70%
2 Nuclear reactors, boilers, machinery, etc 10,144 16.80% 7.30%
3 Organic chemicals 6,327 10.50% 17.30%
4 Fertilizers 3,149 5.20% 63.60%
5 Iron & Steel 2,713 4.50% 177.90%
6 Plastics 1,711 2.80% 29.50%
7 Project goods 1,452 2.40% -31.70%
8 Articles of Iron or Steel 1,392 2.30% 14.20%
9 Pearls, precious or semiprecious stones 1,229 2.00% 29.30%
10 Optical, photographic, medical or surgical instruments 1,222 2.00% 17.10%
11 Vehicles, other than railway 1,165 1.90% 17.30%
12 Ships, boats, etc 1,122 1.90% 19.20%
13 Chemical products 793 1.30% 23.80%
14 Mineral fuels and oils 778 1.30% -7.10%
15 Furniture, bedding, lamps, etc 739 1.20% 23.40%
16 Inorganic chemicals 738 1.20% 7.90%
17 Aluminum and articles 714 1.20% 31.80%
18 Ceramic products 552 0.90% 30.10%
19 Textile fabrics, Textile articles for industrial use 511 0.80% 5.70%
20 Toys, games and sports articles 412 0.70% 12.20%

20. The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the
development of India, partnering industry, Government, and civil society, through advisory and consultative
processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in
India´s development process. Founded in 1895, India's premier business association has over 8000 members,
from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 200,000
enterprises from around 240 national and regional sectoral industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and
enhancing efficiency, competitiveness and business opportunities for industry through a range of specialized
services and strategic global linkages. It also provides a platform for consensus-building and networking on key
issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship
programmes. Partnerships with civil society organizations carry forward corporate initiatives for integrated and
inclusive development across diverse domains including affirmative action, healthcare, education, livelihood,
diversity management, skill development, empowerment of women, and water, to name a few.
In its 120th year of service to the nation, the CII theme of “Build India- Invest in Development, A Shared
Responsibility”, reiterates Industry´s role and responsibility as a partner in national development. The focus is on
four key enablers: Facilitating Growth and Competitiveness, Promoting Infrastructure Investments, Developing
Human Capital, and Encouraging Social Development.
With 66 offices, including 9 Centres of Excellence, in India, and 8 overseas offices in Australia, Bahrain, China,
Egypt, France, Singapore, UK, and USA, as well as institutional partnerships with 312 counterpart organizations in
106 countries, CII serves as a reference point for Indian industry and the international business community.
Confederation of Indian Industry
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi – 110 003, India
T: +91-11-45771000 / 24629994-7 • F: +91-11-24626149
E: info@cii.in • W: www.cii.in
CII China Office
Madhav Sharma, Chief Representative
Confederation of Indian Industry
Room No 11-A 47/49, Shanghai Mart, 2299, Yanan Road (West), Shanghai 200336
Peoples Republic of China
T: +86-21-62360969 • F: +86-21-32283510 • E: ciichinarep@cii.in