India and China are the two fastest growing economies of the world. Both the economies have grown in the post-reform through economic liberalisation which has enabled them to increase external linkage with rest of the world. India's trade relation with China dates back to ancient times, but it began to change in the 1980s with the opening of both the economies. India has emerged as one of the top ten trading partners of China whereas China has become one of the top three trading partners of India in the recent years.
China has moved from a Soviet-style centrally-planned to a market-based economy. It has emerged as a rapid and socially developed country since the market reforms of 1978, while India is developing into an open-market economy.
This paper is an attempt to find out the impact of bilateral trade between Indian and China on India's Gross Domestic Product (GDP) growth. This paper examines India's percentage growth of export-import to and from China from the year 1996 to 2017.
The main aim of the study was to find out how Indio-China trade relation has made an impact on India's GDP. The result shows that, India's export to China could contribute only 14% to India's GDP growth. This indicates that the bilateral trade between India and China could not contribute significantly to India's GDP growth during the period of study. The study concludes that India's export to China could contribute 14% to India's GDP growth while import from China could contribute only 11.5% to the GDP growth of India.
India, China, Bilateral trade, GDP, Economic Growth
