China's WTO entry a wake up call for Indian industry

Naveen Thukral/Reuters

New Delhi, December 10: China's entry into the World Trade Organisation should serve as a "wake up call" for Indian industry which can capitalise on new opportunities once its giant neighbour liberalises its policies, analysts said on Monday. T.K. Bhaumik, a senior policy adviser to the Confederation of Indian Industry, told Reuters that WTO entry will make China's policies more transparent and should benefit countries like India.

"It's a wakeup call for India, the industry should engage in some kind of homework," Bhaumik said. "China's entry into WTO is welcome in the current situation, overhauling of the domestic industry will be required," said Vijaya Katti of the Indian Institute of Foreign Trade. China's imports are likely to surge to $600 billion from the current $240 billion with lower customs tariff agreed to with the WTO, Bhaumik said.

"Even if we can tap one percent of that, it means $6 billion and that should not be a difficult target." The current trade between the two nations is worth around $3 billion annually. China's entry was given the formal go-ahead by the 142 members of the WTO in Doha on November 11 and it will become a member automatically on Tuesday, exactly a month later. WTO membership will open China's rapidly growing economy wider to foreign investors but will also expose its state firms and banks to foreign competition.