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08-16-2012, 09:26 PM #1
India seeks access to Chinese market for IT, pharma products
BEIJING: India will present a roadmap for its companies, seeking access in China for information technology and pharmaceutical products during a crucial meeting of a Joint Economic roupon August 27.
Chinese commerce minister Chen Demingwill come to New Delhi on a two-day visit on August 26. Deming will meet Indian commerce minister Anand Sharma at the eighth annual meeting of the Joint Economic Group. The Chinese minister is also scheduled to meet Indian business representatives in New Delhi.
"We want a clear time-frame on market access," said an Indian official. For over two years, Chinese politicians have been expressing support for India's demand for market access.
But, Indian IT and pharmaceutical companies continue to face serious hurdles during the process of official registration, and in getting Chinese companies to buy their services and products, said a source, adding that Indian pharmaceutical companies have to wait for four to five years for registration of their drugs in China.
"They want the process to be shortened to one or two years," said E B Rajesh, the China head of the Confederation of Indian Industry. Despite the absence of legal barriers , the long delay in the process of drug registration is the biggest challenge faced by Indian companies wanting to enter Chinese market.
Indian IT companies need Beijing's intervention to obtain contracts from Chinese state-run companies and banks. The Chinese Market has eluded Indian IT firms though they have favoured Europe and US for over two decades. "Chinese government support would be very useful to Indian IT companies," said Rajesh.
The Sharma-Chen meeting will be crucial as it comes after seven straight months of decline in bilateral trade volumes. India's trade deficit has seen a small increase to $13.6 billion in the first half of 2012 as compared to $13.4 billion in the same period last year. An important reason is the sharp fall in the prices of iron ore, which is India's biggest export to China.