Though India and China are heading towards new equations in world trade and commerce, bilateral trade between the two neighbours still has a long way to go. The poor participation by Indian companies in the China Industrial Fair on Investment & Trade (CIFIT) is a striking example highlighting all that still needs to be done to bring trade relations between the two countries to the expected levels.
Among the major impediments that come in the way, language is considered the main barrier. " Chinese are not much familiar with English or any other Indian language, neither are we familiar with Chinese language. This creates impediments in establishing trade between the two countries," says P N Ramchandran, executive director, India - China Chambers of Commerce and Industry.
Lack of information at very fundamental levels on both the sides contributes immensely to the poor trade relations between the countries, he adds.
New entrants to the Chinese pharma market find high registration cost a major hurdle. "China has raised its registration cost. Therefore this registration process is now acting as a barrier in pharma trade between the two countries," says Ramchandran. Also, while a lot of APIs are imported from China, exporting formulations into this market involves many bureaucratic problems.
Despite these barriers, many pharma companies have made successful forays into Chinese terrain and have established satisfactory trade relations with the country. Among pharma majors, Lupin is the only Indian company that exports an anti-TB drug, ethambutol to China. Aurobindo Bio-Pharma, NCPC Orchid, Ranbaxy, Dr. Reddys, Knoll, Pfizer, Wockhardt, Cadila, Aarti Drugs are among other Indian companies having trade relations with China.