1. IDEAs-RIS Workshop on Nature and Implications of Expanding Presence of India and China for Developing Asia Asian Experience through trade, Aid and Investment: South Asia I.N.Mukherji Senior Consultant RIS 5-6 November, 2009

2. INDIA AND CHINA IN SOUTH ASIA TRADE

3. Between 2000-2008 both the countries trade has expanded in South Asia but their relative shares remain about the same.

4. In 2000 the import shares of China and India were about equal. In 2008 the shares of china and India became about one-third and two-thirds respectively.

5. In 2008 both countries exported predominantly intermedite goods of around 50%. However China exported relatively more capital goods while India relatively more consumer goods and raw materials.

6. In 2000 China predominantly imported intermediate goods (96%), and miniscule consumer goods. By contrast, Indias import structure was more balanced, importing intermediate goods, consumer goods and raw materials in order of importance.

7. In 2008 China continued to import predominantly intermediate goods, but also raw materials. Its imports of consumer goods and capital goods was modest to negligible. India continued to import intermediate goods but also consumer goods, raw materials as also some capital goods.

8. INDIA AND CHINA IN ASEAN TRADE

9. ASEANs Imports from India, China and World (Value in $ billion) YearChinaIndiaWorld 200016.743.13349.72 200119.43.56334.67 200226.134.03355.05 200332.744.47397.93 200446.577.16496.22 200559.728.47576.75 200667.359.68615.24 Source: WITS Database, March 2008

11. In 2000, 50% of ASEANS imports from India were intermediate goods, 19% capital and consumption goods. From China ASEAN imported 45% capital goods and 24% consumer goods.

12. In 2006, ASEANs share of Chinese imports went up to 60% for capital goods, whereas in case of India, the share of consumer goods went up to 39%.

13. Over the period 2000-06 the share of China in ASEANs world imports has gone up has gone up significantly in all end-use products (particularly in capital goods), while the share in raw materials has declined.

14. In case of India, the share of India in ASEANS world imports of consumer goods and intermediate goods only has gone up over the period 2000-06.

15. The share of India in ASEANs world imports increased primarily in case of intermediate and consumer goods.