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Indian economy and its global trade

By Shabbir Bhimani
Source SIFY
 | 2009-11-11 13:59:54

The Indian stock market is riding along with other global market and also confirms that it has not decoupled from other global markets or with the American market, in particular.

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The importance in the high riding of Sensex is typically different from other markets as the results season so far does not produce any adverse reporting. Further, the recent ties between Indian government and its neighbour, China and ASEAN countries are helping to maintain its economic growth along with the stimulus packages provided by all its neighbouring countries.

More India business stories | Get the latest Sensex update

To further strengthen ties: India and China vow to strength bilateral trade

The Prime Minister, Manmohan Singh, had recently met with his Chinese counterpart, the Chinese premier, Wen Jiabao. Both the leaders were very out coming and even declared to further strengthen the ties between the two countries by burying beneath all other differences. Both the leaders discussed the huge difference in trade imbalance.

On the bilateral engagement of about $41.60 billion in the year 2008-09, the contribution of Chinese import to India stands at a whopping $31.33 billion. On the other hand, India’s export to China stands at a meager $9.27 billion, creating a big gap in trade deficit with China, which raised a huge discomfort with domestic manufacturing firms.

The Chinese premier was very forthcoming on this front and stated that his government will look into the balance of trade, which now stands in its favour. This was welcomed by both, Manmohan Singh and by Indian business community.

India and its Asean partners: To develop closer ties

Manmohan Singh as stated in the recently concluded 7th India - ASEAN summit that the conclusion of the India - ASEAN Trade – In – Goods Agreement in August 2009 is a major step in developing better trade ties with its counterparts.

He further released a 5-point agenda to develop and strengthen the relationship and trade with ASEAN countries. It included the establishment of an India - ASEAN Round Table comprising think tanks, scholars, policy makers and media and business representatives to study and advise the government from time-to-time to bridge the gap in knowledge and trade.

They have also agreed to establish more co-operation in agriculture sector and to give more importance in space technologies by helping its ASEAN members to share the satellite data in management of natural disaster and in launching small satellites made by the member countries.

He further emphasised that after signing the FTA Association of Southeast Asian Nations in August, the two sides are negotiating to increase the pact to include investment and services.

More India business stories | Get the latest Sensex update

He said with the Indian services contributing about 55% of its economy, India is looking to increase and tap the services market in the Southeast Asia. Singh also wanted to simplify the visa regime between the two sides to increase free movements of business and tourist travel and declared that India is keen to hold an ASEAN Trade and Industrial Exhibition in India in October 2010 or in January 2011.

Shabbir Bhimani, developer by profession in the field of web and database. Currently doing full time blogging and like to share experiences on how you can make money online at CodeItWell.com



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