The document discusses the evolving trade relationship between India and China, highlighting their roles as two of the fastest-growing economies despite geopolitical tensions. It underscores the significance of bilateral trade as a confidence-building measure, which has seen a positive trend since 1962. The goal of reaching $20 billion in trade, set for 2008, was anticipated to be achieved by the end of 2005.

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INDIA ANDCHINA
STATIC CHANGE IN TRADE India export data

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TRADE STRATERGY
Establishing the two biggest international economic powers and
concerting the partnership into great trade strategy India and
China played a vital role in that. Despite the tension between the
countries on the international borders, they are trying to make
the countries more close in term of trade. China is increasing the
export of manufactured goods which is the strength of the
country and India is also trying to do the same thing but only got
the hike of 7%.
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BILATERAL TRADE
Both the countries are bound in the bilateral trade as both the countries are the
fastest growing economy in the world. Nothing compares to the China-India
bilateral trade when it comes to evaluating the positive trends in post-1962
China-India relations. China-India bilateral trade as a confidence-building
measure that must be underlined to appreciate its interface with their political
relations which remains so critical for its long-term prospects. Both sides clearly
display that understanding at least in their more recent initiatives.
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ECONOMY
According to World Bank estimates, and
assessed on the basis of purchasing
power parity, China and India have
already become respectively the second
and fourth largest economies of the
world surpassing developed countries.
China and India today represent two
unique new players—presenting an
extraordinary combination of a very
large GDP and still with significant
poverty and pockets of unrest and a
very low per capita income and living
standards.
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Therefore, more than being measured in terms of statistics
and profits, it is the political impact of trade which remains
the barometer of their economic engagement. Starting
with an extremely slow pace with an annual turnover of
only a few million dollars, and then staying on the margins
for much of the 1980s, their trade has gradually come to
occupy the center stage of their interaction. The target of
reaching US$20 billion in bilateral trade by 2008—set by
the two prime ministers in their meeting in Delhi in April
2005—is now expected to be reached before end of 2005.
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