More India SMEs source from China

India - India's SMEs are warming up to China as a sourcing base, said an executive at a recent China Sourcing Fair in Mumbai.

Chinese exports to India had grown by over 30% in the past 12 months, reflecting the trend that Indian SMEs are increasingly viewing China as a major sourcing hub, local media covering the trade show said.

Speaking at the China Sourcing Fair, Bill Janeri, general manager of Global Sources (Middle East) said Indian consumers were reacting positively to China-made goods, and that companies in both countries are expected to benefit from a boom in trade.

Bilateral trade between the two countries currently stands at US$38.5 billion, which could grow by over 50% by 2010, analysts predict.

Janeri added that part of the reason the fair was held was to identify the Indian market and see how local consumers respond to Chinese products. While the amount of business generated during the event was not known, Janeri said "The footfalls were more than what we had expected for the three-day event".

Indian SMEs currently import mostly electrical items from China, but have begun sourcing more iron and steel products from China in the past 12 months.