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India's economic relations with China remained at low ebb after the
Border War in 1962. However, economic ties between the two
countries got a big boost when India initiated economic
liberalisation programme in early 1990s. India and China - with
massive populations of 121 crore and 135 crore respectively - are
the two fastest growing economies in the world. According to the
much-publicised Goldman Sachs BRICS (Brazil, Russia, India, China
and South Africa) Report, India is predicted to become the third
largest economy in the world, after China and USA, by the year
2050, overtaking all other developed economies. Economic relations
between the two emerging economic giants of the world need to be
strengthened for mutual benefit. The present volume provides a
comprehensive analysis of economic relations between India and
China in a disaggregative and comparative manner. Growth and
composition of trade between the two countries has been examined
through various trade related indices. Various dimensions of
India's exports to China have been assessed in detail. Moreover,
economic reforms and FDI inflows of the two countries have also
been examined in a comparative perspective.
India and China have emerged as robust global economic powers
during the last two decades. Their economic interactions,
particularly in the field of merchandise trade, have increased
tremendously. China has already become the second largest trade
partner of India while India's share in China's global trade is
also increasing continuously. With growing trade ties between the
two neighbouring countries, it becomes important to analyse the
distribution of gains from their mutual trade. Hence, this study
attempts to analyse the trends in India's terms of trade with
China. For this purpose, India's Net Barter Terms of Trade (NBTT)
with China has been computed for the period from 1992-93 to
2004-05. For most of the years, during the study period, India
experienced favourable terms of trade with China as compared to its
overall unfavourable terms of trade. However, it has also been
found that India's terms of trade were greatly influenced by one
single commodity named iron ores & concentrates.
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