*Professor, Faculty of Commerce, Banaras Hindu University, Varanasi, 221005
**Junior Research Fellow & Doctoral Scholar, Faculty of Commerce, Banaras Hindu University, Varanasi, 221005
Online published on 19 August, 2014.
Today India's relation with China Is considered as most priority one, not only for Asian countries but also for the whole world due to their rapid growth of economic, The developmental successes of the People's Republic of China (PRC) and India are reshaping the economic landscape of not only Asia but also the world, this is because these two Asian Giant are in power to affect not only economic sector but as also the world politics. India and China economies have demonstrated threats to the international market due to challenges they have posed to the global market, as China is leading in manufacturing sector popularly known as “factory of word manufacturing” on the other hand India is well known for its quality in service sector. Today China is the number one trading partner for India followed by USA and UAE on the other side India falls into each of the four major categories of countries that China wants to focus its diplomatic energies on, that is developing countries, neighbouring countries, rising powers and influential actors on the international stage. “China realizes that its ties with India will be the key to ensuring stability in Asia. Given its chickened history, this relationship requires personal care at the highest level” (www.atimes.com/atimes/China/HK14Ad01.html). Currently the relationship between the these two Asian superpower nation is mixed in nature as there in greater chance of cooperation in field of trade and commerce at the same time there is mistrust and mutual suspicion in field of political and geographical area as it has happen in the year 1962. Apart from mutual benefit from cooperation on each side still there are a lot of challenges in India-China relation as Aiyar (2006) suggests strongly, the task of strengthening Sino-Indian ties will require painstaking work, changing fixed mindsets and balancing a complex set of factors(www.atimes.com/atimes/China/HK14Ad01.html). The beauty of international trade is that it enables every country to specialize in what it does best, export these specialties, and use the money to import what other do best. All countries end up specializing in what they do Best, improving global productivity and reducing prices for everybody. In this light this paper tries to examine the past and current position of India's trade with China to know their affect on other developing nations.
India, China, International Trade, Mutual Cooperation, Trade Deficit, Neighbouring Countries
