Bilateral trade between India and China has made steady growth during the last one decade rising from US$ 338.54 million in 1992 to US$ 7.59 billion in 2003. The bilateral trade which was in China’s favour since 1997, turned into India’s favour by about US$ 908 million in 2003 with a growth of 53.6%, as compared to that in 2002. In 2002-2003, growth rate of India’s export to China was 107.52%, as compared to 20.29% increase in India’s global export.

India’s machinery (HS Code 84-90) exports to China reached US$ 76.82 million in 2002-2003 registering an increase of 81% over the previous year.
Machinery exports continued to rise in 2004 and reached US$ 51.32 million in the first five months with an increase of 177.56% over the corresponding period of the previous year.

“In optical and medical instrument (HS Code 90), India ranked 27th as top exporting nation to China with trade volume of US$ 35 million and share of 0.14%”.

India’s export of machinery increased by a healthy 178% in the first five months of 2004 over the level achieved in the corresponding period last year. What is noteworthy regarding the dynamic pattern of exports in this segment is that India’s exports have increased in absolute terms in every successive month this year, rising from US$ 6 million in January 2004 to US$ 15 million in May 2004. Temperature changing machinery (HS 8419) emerged as the top item of exports within this segment at US$ 8.25 million, with transactions worth US$ 5.1 million taking place within the month of May itself. Transmission products (HS 8483), the second largest sub-category of India’s export in this segment, at US$ 6.47 million, however, showed a decline of 20% year-to-year. Pipe taps, cocks, valves (HS 8481) were the third largest category (US$ 4.27 million), growing over 381% over Jan-May 2003, while centrifuge, filters etc. (HS 8421) grew to US$ 4 million, increasing nearly 5-fold year-on-year.
 
“Optical and Medical Equipment”
With regard optical, photographic and medical instruments, China ranks 4th in the list of global exports of India in case of these instruments. The leading indigenously produced equipments include ultrasound, CT Scanners, ICCU, Heart /Lung machine, linear accelerators, Doppler Ultrasound machines, MRI Scanners, Therapeutic Equipment, Medical Furniture, Multi Parameter Monitors & Disposable Syringes.