India relation with china import, export, cultural, trades, exchange rates

1. SUMBITTED BY:
ARPAN KHANNA
INDIA RELATION WITH CHINA
ANSAL
UNIVERSITY

2. Introduction
 The relations of both countries was established on
1st April 1950 .
 It was established by the prime minister of India
Jawaharlal Nehru and Zohu Enlai.
 The relations was scattered in 1962 when China
attacked India.
 It took 14 years to resolve the grudges.
 1976 the relations of both the countries has once
again established.

3. ECONOMY OF COUNTRY
 The country ranked ninth in nominal gross
domestic product (GDP) with USD 214 billion; 35
years later it jumped up to second place with a
nominal GDP of USD 9.2 trillion.
 Became the largest category of GDP with a
share of 46.1%, while the secondary sector still
accounted for a sizeable 45.0% of the country’s
total output.

4. Rivers
 China has more than 5,000 rivers flowing through its
territory. Most rivers flows from high plateau of western
China to the lower easter China. Top 10 most famous rivers
in China are – Yangtze River (6,300km), Yellow River
(5,464km), Pearl River (2,200km), Songhuajiang River
(1,927km), Heilongjiang River (4,370km), Yarlung Zangbo
River (2,900km), Nujiang River (2,816km), Lancangjiang
River (2,354km), Hanjiang River (1,532 km), Liaohe River
(1,394km).

5. India – China Relations
 The relations of both countries is 61 years old.
 The trade is one of the biggest factor that has made
the relationship better.
 In terms of investment the relation is fantabulous
among both the countries.
 There are 80 companies of China and over 100
companies of India
 established in both the countries.(This shows that
the relations among both the countries)
 However ,India relations with China is always
found controversial and bitter.

7. Trade between both countries
 Indo - China economic and trade relations have
grown steadily in last 10 years.
 Major exports items from India are – Furniture,
Garments ,Handicrafts and Chemicals items.
 Major imports items from China are – Electronics
Textile Fabric and Telecommunication.
 The trade has increased at a vast rate in last 3
years.

8. 10 Year data of trade

10. China’s Balance of payments
The current account has recorded a surplus in
every year since 1994. The capital account
followed suit and only recorded two deficits in the
last 20 years. This situation of surpluses in the
both the current and the capital put pressure on
the national currency and prompted the Central
Bank to sterilize most of the foreign currency
that entered the country. The second largest
recipient of foreign investment. Among the
countries that invest more in China are Hong
Kong, Singapore, Japan, Taiwan, and the
United States.

11. Trade Structure
China signed the Closer Economic Partnership
Arrangement with Hong Kong and Macau. A Free
Trade Agreement (FTA) between China and the
ASEAN nations came into effect on January 2010,
which created the world’s third largest free trade
area in terms of nominal GDP. China also established,
among others, FTA with countries such as, Australia,
Chile, Costa Rica, Korea, Pakistan, Peru, New
Zealand, and Singapore. Moreover, there are other
FTAs under negotiation with the Gulf Cooperation
Council, Japan, Norway and Sri Lanka.

12. Exports from China
Electronics and machinery make up around 55% of
total exports, garments account for 13% and
construction material and equipment represent 7%.
Sales to Asia represent over 40% of total shipments,
while North America and Europe have an export
share of 24% and 23%, respectively. Although exports
to Africa and South America expanded rapidly, they
only account for 8% of total shipments.

13. Exchange Rate Policy
The speed and direction of the crawling peg is
decided by Chinese authorities according to
domestic and international economic
developments. From 1995 to 2005, China kept
its currency fixed versus the U.S. dollar at
around 8.28 CNY per USD.
In the wake of the global financial crisis, China
pegged its currency to the USD at 6.82 CNY per
USD from June 2008 to June 2010. And today
it is 6.96/USD.

14. INDIA’S TRADE ANALYSIS WITH
CHINA
China imports from India
 Cotton: $3.2 billion
 Gems, precious metals, coins: $2.5 billion
 Copper: $2.3 billion
 Ores, slag, ash: $1.3 billion
 Organic chemicals: $1.1 billion
 Salt, sulphur, stone, cement: $958.7 million
 Machines, engines, pumps: $639.7lmillion
 Plastics: $499.7 million
 Electronic equipment: $440 million
 Raw hides excluding furskins: $432.7 million

15. India imports from China
 Electronic equipment: $16 billion
 Machines, engines, pumps: $9.8 billion
 Organic chemicals: $6.3 billion
 Fertilizers: $2.7 billion
 Iron and steel: $2.3 billion
 Plastics: $1.7 billion
 Iron or steel products: $1.4 billion
 Gems, precious metals, coins: $1.3 billion
 Ships, boats: $1.3 billion
 Medical, technical equipment: $1.2 billion

16. Trade Deficit
 India’s trade deficit with China increased
more than two-fold (219%) from $16
billion in 2007-08 to $51 billion in 2016-
17, according to commerce ministry data.
 The recent trade war between the United
States of America and China has sparked a
ray of hope for Indian exports such as
cotton, soya bean and maize to Asian
markets, especially to China.

17. ISSUES AND CHALLENGES WITH
CHINA FACE BY INDIA
 Border Issues
 Water issues between China and India
 Indo-China Trade issues
 Anti dumping duty
 Restrictions of imports from china
 India exports only raw material
 Ban on import of genetic drugs by china
 Popularity of Chinese goods
 Embargo on Chinese goods.
 India china trade balance