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Indo-China trade is poised for a major leap forward and has the potential to double from the current level of US$15 billion to $30 billion by 2009.

It could be achieved if vigorous efforts are made by both sides and new products are identified for trade, according to industry chamber FICCI.

In a paper on deepening the economic engagement between the two countries, it is highlighted that the key items of India's exports to China in 2004-05 included ores, slag and ash, iron and steel, plastics and articles thereof, organic and inorganic chemicals.

Further, India's exports to China are highly concentrated as top three export items accounted for 71 per cent of total exports and top five export items accounted for 81.4 per cent in 2004-2005, according to the paper.

On the other hand, India's imports from China present a balanced picture with both resources based and manufactured products listed in the top 10 imports. The key items of India's imports from China in 2004-05 included electrical machinery and equipment, nuclear reactors; mineral fuels and products; organic chemicals and silk, according to the paper.

To grow the Indo-China trade further, the chamber recommends India to capitalise on the growing demand of construction industry in China for products like iron ore, slag, ash, plastic and linoleum. While the demand for specialty steel is strong in China, both due to the booming housing and industry construction, China is also emerging as a big importer of aluminium, especially for its communication and transport infrastructure.

The chamber also notes that the restructuring of China's textile sector could result in new opportunities for increasing exports of cotton yarn and fabrics to China. East China possesses the ability to compete in the market for international high quality textile garment and middle processing technology.