In comparison, China accounted for 10.4 % of the world trade in 2010.India has been focusing lately on improving the quality of its goods and offering better value for money to its main export markets .Indian exported goods offer a different value proposition than the Chinese low cost products, that has seen the share of India's exported goods rise globally along with the low cost Chinese exports.
The contribution of engineering goods to India's total export basket in 2010- 11 stood at 38 %, with the share of textiles being 14 %. China is the world's largest manufactured goods exporter and heads the list of nations in the production of low cost goods. The Chinese trade surplus has fallen to zero in 2010 and 2011. While China excels in manufacturing cheap goods with its advanced equipments and skilled workers, India has been shifting its focus to medium and high value products, rather than competing in the low cost segment in which China has a dominant position.
China employs the strategy of mass production of goods; India on the other hand produces goods in small batches, which lend an advantage to India over China in terms of higher variety in its goods. China imported Indian engineering goods worth $5631.66 million in 2010-11(April-Jan), which made it India's largest importer of engineering products during the period. Chinese cheap goods such as flanges, which are used in pipe connections, are imported by Indian manufactures who use these as raw materials in the production of larger pipes, which are then exported to other countries.
However, if India has to increase its share in the global trade, it has to enhance innovation, cut down its manufacturing costs and upgrade its technology to produce better quality products.