India-China Trade
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India-China Trade is one of the issues that has attracted the attention of people all over the world. The meeting between Chinese President Mr. Hu Jintao and Indian Prime Minister Dr. Manmohan Singh in November 2006, drove new blood into the bilateral trade relationships between India and China.
Historical perspective
India-China trade relationship has historically been insignificant. Much of this owes to the cold political relationship that had existed between the two nations since their independence. The Indo-China War in 1962 further bittered the prospects of trade between them. It was only towards the end of the twentieth century, that the two nations started analyzing the negative impacts that their indifference on each other had had on their economies. As a result of this self introspection, India and China decided to strengthen their political ties and the best way of commencing it was through promotion of bilateral trade between India and China.
Present situation
Today, Indian and Chinese markets are smoothly accessed by each other. There has been a big influx of consumer goods manufactured in China into the Indian markets like electric fans, batteries etc. India has also lately started making its presence felt in the information technology markets in China.
Chronological trade estimates
The growth of Indo-China Trade in recent years can be understood by the following figures:
Thus irrespective of what commodities India and China trade in, the two countries can only benefit from their free market entry and eventually uplift the standard of living in the long run.
India-China trade relationship has historically been insignificant. Much of this owes to the cold political relationship that had existed between the two nations since their independence. The Indo-China War in 1962 further bittered the prospects of trade between them. It was only towards the end of the twentieth century, that the two nations started analyzing the negative impacts that their indifference on each other had had on their economies. As a result of this self introspection, India and China decided to strengthen their political ties and the best way of commencing it was through promotion of bilateral trade between India and China.
Present situation
Today, Indian and Chinese markets are smoothly accessed by each other. There has been a big influx of consumer goods manufactured in China into the Indian markets like electric fans, batteries etc. India has also lately started making its presence felt in the information technology markets in China.
Chronological trade estimates
The growth of Indo-China Trade in recent years can be understood by the following figures:
- In 2006, trade between India and China amounted to US $ 13.6 billion in which, former recorded a trade surplus of US $ 1.75 billion.
- In the first four months of 2007, there has been a 56.8 % increase in India China trade and has crossed US $11.4 billion.
- India and China have agreed to boost their trade to $ 20 billion by 2008 and to double it by 2010.
Thus irrespective of what commodities India and China trade in, the two countries can only benefit from their free market entry and eventually uplift the standard of living in the long run.
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