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.