History of Trade between INDIA and
• SILK ROUTE-Important path for cultural,
commercial and technological exchange
between India and china from 206BC-220AD
• Slaves, silk, satin, spices, medicines, jewels,
glassware were some of the Goods.
Sino-Indian Border Conflict
• Sino India war was a war between China and India that occurred in 1962.
The Chinese launched simultaneous offensives in Ladakh and across the
McMahon Line on 20 October 1962.
• The Sino-Indian War is notable for the harsh conditions under which much
of disputes took place, entailing large-scale combat at altitudes of over
4,250 meters (14,000 feet).
• The Sino-Indian War was also noted for the non-deployment of the navy
or air force by either the Chinese and Indian sides.
• Result : Chinese military victory.
• There were no proper relation between
India and China till 1993.
• In 1993 and 1996, the two sides signed the Sino-Indian Bilateral Peace
and Tranquility Accords, an agreement to maintain peace and
tranquility along the Line of Actual Control.
• With Indian former President Mr. K. R. Narayanan's visit to China, 2000
marked a gradual re-engagement of Indian and Chinese diplomacy.
• In 2003 China officially recognized Indian sovereignty over Sikkim, as
the two nations moved toward resolving their border disputes.
• In April 2005, Chinese Premier Mr. Wen Jiabao visited Bangalore to
push for increased Sino-Indian cooperation in high-tech industries.
• On July 6, 2006, China and India re-opened Nathula, an ancient trade
route which was part of the Silk Route.
• Asian Development Bank in 2008 formally acknowledging Arunachal
Pradesh as part of India, approved a loan to India for a development
Shri Ashok Chakravorty, the Culture Wing
dance teacher conducted a short-term
Indian dance workshop for dance
teachers at a local private dance school
The Annual meet of the China-India Friendship Association was held in Beijing on Jan 14.
The theme of the meet was “Year of the Tiger: China’s Endangered Predator.”
A Memorandum of Understanding was
signed in Beijing on the 16th April 2009
by the Governments of India and China
on the "Festival of India" in China and
the "Festival of China" in India to be held
The new Culture and Information Wing of
the Mission began functioning during
2008. The festivals will be cultural events
which will seek to promote mutual
awareness and understanding of the rich
cultural heritage of each country.
• Medical feat: Indian doctors, made in China : Thousands of made-
in-China Indian doctor hopefuls enrolled in Chinese medical
universities eager to take advantage of this deal, which seemed too
good to be true and, as they are finding out, might actually be.
• Diplomats say that easy admission systems, affordable fees and
high standards of facilities are the chief attractions for Indian
students, who now number more than 6,000 all over China.
• According to Indians, the average tuition fee in a Chinese medical
university is $2,000-$3,000. Another $1,000 is needed for board
and lodging. This is a fourth of what one would spend in India.
• CHINA SCHOLARSHIP for Indian students with work experience
• Some of the top chinese universities for indians are Wuhan
University, Xiamen University, Shenzhen University, Harbin
Economic Growth and Global
The Four Noble Truths of the new Millennium.
• Goods (Intra-Industry trade and Value added
• Services and Knowledge Industries (IT, ITES,
Professional services, Biotech, Tourism)
• Foreign Direct Investment:
• Technology: Moving up the value chain in the
global production process.
India in Brief
• Population estimate 2010 : 1,184,681,000
• GDP(PPP) - Total $3.526 trillion
• GDP(nominal) Total $1.235 trillion
• Per capita $1,031
• GDP by sector agriculture (17.5%), industry (20%),
services (62.5%) (2009 est.)
• Main export partners US 12.3%, UAE 9.4%, China 9.3%
• Main import partners China 11.1%, Saudi Arabia 7.5%,
US 6.6%, UAE 5.1%, Iran 4.2%, Singapore 4.2%,
• Main industries telecommunications, textiles,
chemicals, food processing, steel, transportation
equipment, cement, mining, petroleum, machinery,
China in Brief
• Population - 2010 estimate 1,338,612,968
• GDP(PPP) - Total $9.712 trillion
• GDP(NOMINAL) - Total $5.365 trillion
• GDP by sector industry (48.6%), services (40.5%),
• Main export partners US 17.7%, Hong Kong 13.3%,
Japan 8.1%, South Korea 5.2%, Germany 4.1% (2008)
• Main import partners Japan 13.3%, South Korea 9.9%,
Taiwan 9.2%, US 7.2%, Germany 4.9%
• Main industries mining and ore processing, iron, steel,
aluminum, and other metals, coal; machine building;
armaments; textiles and apparel; petroleum; cement;
chemicals; fertilizers; consumer products, including
footwear, toys, and electronics
India-China Trade Relations
• According to statistics of Chinese Customs Head Office, bilateral
trade reached $18.7 billion in 2005 and $20 billion in 2006 and $28
billion in 2009
• India and China are directly competing across several product
• Recently Chinese premier Wen Jiabao visited India, where he said
that India and China must take their trade to $30 billion level by
• Iron ore constitutes about 53% of India's total exports to China.
Among the potential exports to China, marine products, oil seeds,
salt, inorganic chemicals, plastic, rubber, optical and medical
equipment and dairy products are the important ones.
• Chinese exports to India, especially machinery, including electrical
machinery, which together constitute about 36% of exports from
• The top 15 Chinese exports to India have recorded growth between
29% (organic chemicals) and 219.89% (iron and steel).
• Bilateral trade or clearing trade is trade exclusively between two
states, particularly, barter trade based on bilateral deals between
governments, and without using hard currency for payment. Bilateral
trade agreements often aim to keep trade deficits at minimum by
keeping a clearing account where deficit would accumulate.
• Bilateral investments are not encouraging either, with investments by
either side being US$30-40 million annually.
• India and China have stepped up functional cooperation and there is
close cooperation in areas as diverse as culture, trade and economy,
water resources, audit, personnel, mining, space, science and
• The S&T relations between India and China function within the overall
ambit of the Agreement on Cooperation in Science and Technology,
signed between the Department of Science and Technology and the
PRC Ministry of Science and Technology
• China Eastern Airlines commenced direct air services between Beijing,
Shanghai and New Delhi in March 2002. Air India started operations to
China in December 2003.
Free Trade Agreement
• Open regionalism and trade cooperation between the world's two
largest developing countries, the People's Republic of China (PRC)
and India, can foster outward-oriented development and intra-
regional trade based on comparative advantage and available factor
• India and China have formally launched talks to study the feasibility
of signing a bilateral Free Trade Agreement (FTA) as well as a
Comprehensive Economic Cooperation Agreement (CECA) to
cement their booming commercial ties
• The two countries can increase bilateral trades with the FTA many
times. In 2004, the bilateral trade between the two countries
increased by 650% over the past five year. The bilateral trade can
touch a staggering 130 billion dollars by 2015.
• China is pushing for a Free Trade Agreement with India, which will
create the biggest free trade region in the world.
Chinese Companies in India
• Jiangsu Overseas Group Corporation (China
Investment Development & Trade Promotion
• China Shougang International Trade and
• FiberHome Technologies Group
Indian Companies in China
• Infosys Technologies Ltd
• Raymond Ltd
• Reliance Industries Ltd
• Aurobindo labs