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India's merchandise trade with China: growth, prospects and future potential?

haq wani, Nassir ul and dhami, Jasdeep kaur (2016): India's merchandise trade with China: growth, prospects and future potential?

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India and China are the two important emerging economies of the world with strong history of intimacy. After liberalization both have made rapid progress. Owing to large size and amalgamated composition of economies, the economies are looks as the upcoming global leaders on the international arena. The bilateral trade between the nations has definitely impact on the economic scenario of global trade. The trade relation in terms of trade between India and China is developing its own impetus and dynamism. India’s share in China’s exports and Imports increased from 0.51 per cent and 0.30 per cent in 1995 to 2.66 per cent and 1.34 per cent in 2011 respectively. During the period of 1995-1999, the actual growth rates of Indian exports to and imports from China, i.e. 3.07 per cent and 6.05 per cent respectively. The political relations between India and China turned to be good one, which positively affected their trade relations. The trade between these two giant economies has been identified as the most sensible and reliable instrument, in recognizing the impact on the dynamism of the global economy and its vibrant growth speed. It is in this context of their changing behavior, the current paper makes an endeavor to appraise that how the bilateral trade between the two economies becomes as a tool in intensifying their partnership for their joint advantages in the future time.

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