India replaces Canada as China's trading partner

India overtook Canada to become China's 10th largest trading partner in January as monthly trade between China and India soared by 63.3 per cent to $2.63 billion, latest Chinese customs statistics show.

The European Union, the US and Japan remained China's top three trading partners during the period, with bilateral trade volume of $26.46 billion, $23.43 billion and $17.51 billion respectively, up 37.9 per cent, 27.8 per cent and 26.5 per cent each, the general administration of customs said.

Sino-Canadian trade volume stood at $2.23 billion last year. India crossed Canada with total trade in the first month of 2007 hitting $2.63 billion.

In 2006, Sino-Indian trade grew by 33.87 per cent to $25.05 billion, crossing the $20 billion set for 2008 by the two governments in 2005.

At the same time, China enjoyed an impressive trade surplus of $4.11 billion last year compared to just $843 million in 2005.

Indian exports to China grew 7.05 per cent to $10.46

billion. However, Chinese exports to Indian shot up by 63.23 per cent to $14.58 billion, Chinese customs statistics showed.

"The growth in our bilateral trade with China is quite impressive," Councellor, Economic & Commercial, Embassy of India, Sanjay Verma said.

Verma stressed that Indian industries should attach more importance to the Chinese market and diversify and expand the trade basket so that the high growth in bilateral trade is sustainable.