Despite India slapping anti-dumping duties on an array of Chinese products, China's exports to India last year zoomed 40.8 per cent to reach an all-time record of $2.67 billion.

According to Chinese Customs Statistics, India's exports to China also grew by an impressive margin of 33.7 per cent to $2.27 billion, making China one of the biggest trading partners of the country in 2002.

The combined effect reflected on the total bilateral trade figure, which nearly touched the $5 billion dollar-mark in 2002 at $4.94 billion.

However, the trade balance is steadily going up in favour of China in recent years, the figures show. In 2001, the trade balance was $196.302 million while in 2002 it rose sharply to $397.548 million.

Officials said they are confident that this year the bilateral trade would set another record by crossing the five-billion-dollar barrier through concerted efforts by the two sides to facilitate mutually-beneficial trade ties.

As part of these pro-active policies, India and China recently agreed to offer each other a more preferential tariff status this year than the Most-Favoured-Nation tariff rates by applying the Bangkok preferential trade arrangement.

Under the agreement, China has agreed to offer a preferential tariff line on 217 items under its new status as a member of the World Trade Organisation, which would further boost India's exports to China.

The basket of Indian exports to China is mainly comprised of ores, iron and steel, plastics, organic chemicals, mineral fuels, marine products and paper.

In view of China's booming economy and the high priority the communist nation is giving to construction of infrastructure, the demand for iron and steel is soaring.

India's exporters are using this opportunity to cash-in on the demand, and in 2002 the growth from the iron and steel sector was 31 per cent to $262.029 million from $200.070 million in 2001.

Inorganic chemical exports from India to China also rose sharply last year by 168 per cent to $72.558 million from $26.786 million in 2001.

Plastic has been another major Indian item of export to China in recent years. This sector exported $262.110 million worth of products last year, growing by a hefty 57 per cent over 2001.

Organic chemicals sector witnessed steady demand with Indian companies finding market for $234.802 million, registering a growth of 67 per cent over that of 2001.   

India's export of cotton to China, once a major product, is witnessing a declining trend. In 2002, cotton exports amounted to $156.733 million, down by 20 per cent. In 2001, India's cotton exports to China amounted to $188.532 million.

Marine products, once a popular item, witnessed declining trend in 2002 with exports plummeting by 54 per cent to $49.673 million compared to $77.462 million in 2001.

The major items in the Chinese export basket to India comprise of electrical machinery, organic chemicals, silk, mechanical appliances, mineral fuels, edible vegetables and textiles.

Out of this, electrical machinery sector witnessed a growth of 125 per cent in 2002 when India imported $564.565 million worth of goods from China compared to $250.304 million.

In the organic chemicals sector, India's import amounted to $543.343 million last year, registering a 43 per cent growth over 2001.

Chinese exports of man-made filaments to India also rose sharply by 372 per cent to touch $65.233 million last year compared to $13.813 million in 2001.

Chinese silk, one of the most popular items in India also witnessed growing demand last year when China shipped $219.466 million worth of goods to India, registering a 21 per cent growth. In 2001, China earned $181.039 million from exporting silk to India.