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Chinese Visa Service
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India is one of the countries that does not need a transit visa.
Visas are not required of aliens (except citizens of the United States and the United Kingdom), who hold final destination tickets and have booked seats on international airliners flying directly through China, and will stay in a transit city for less than 24 hours without leaving the airport.
Visas are not required of Citizens of the following countries, who transit through Pudong Airport or Hongqiao Airport of Shanghai, provided they hold valid passports, visas for the onward countries, final destination tickets and have booked seats, and stay in Shanghai for less than 48 hours: Republic of Korea, United States, Canada, Australia, New Zealand, Germany, France, Netherlands, Belgium, Luxemburg, Portugal, Spain, Italy, Austria, Greece.
From http://visa.ywpw.com/visatypes/visa_g_en.html
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