Journal of Research: THE BEDE ATHENAEUM
  • Year: 2023
  • Volume: 14
  • Issue: 1

India's GDP growth in the context of Indo-China trade relations in the 21st Century

Department of Economics, Himachal Pradesh University, Summer Hill, Shimla, India

*Corresponding Author Email- chauhan.unnatti@gmail.com

**rakeshsingh@hpuniv.ac.in

Online published on 28 March, 2023.

Abstract

Despite being the world's most populous countries, India and China are the world's two fastest-growing economies. As a result of economic liberalisation, both economies have grown in the post-reform period, allowing them to strengthen their external links with the rest of the world. Since the market reforms of 1978, China has emerged as a rapidly developing country. It has progressed from a centrally planned economy in the Soviet-style to a market-based economy that plays an important role in the global economy. China and India established bilateral trade relations in the mid-1980s. India has emerged as one of China's top ten trading partners in recent years, while China has emerged as one of India's top three trading partners. In the current global economic scenario, the two countries’ economic relationship is regarded as one of the most important bilateral relationships, and this trend is expected to continue in the coming years. This paper takes into account India's percentage growth of export-import to and from China in the 21st century. Exports between the two countries have increased slowly but steadily whereas the import growth has slowed in recent years as compared to the early years of the twenty-first century. Further, this paper attempts to examine the impact of bilateral trade between India and China on India's Gross Domestic Product (GDP) growth. The study's primary goal is to determine how the India-China trade relationship affected India's GDP. According to the findings, the bilateral trade between India and China has little impact on India's GDP growth during the study period.

Keywords

India, China, Export, Import, GDP