An analysis of Indo-China trade over the last decade

India and China are the two most populous and fastest growing economies of the world. Their economic growth in last decade has attracted the world attention. Historically the two countries have had relations more than 2000 years old. Recently, the trade has been the key determinants of India-China relations. The paper provides a detailed analysis of India's trade with China over the last decade. The paper analysed the trade intensity of India-China trade, exports, imports, balance of trade, share of world exports and trade pattern, between the two countries during the period 2001–2012. Calculations are based on trade intensity index, Compound Annual Growth Rate (CAGR), simple growth rate, averages and percentage. This paper reveals that India's export intensity is low and import intensity is higher with China in the past decade. Other findings of the paper include that share of China in world exports increasing continuously (4–11) % whereas India maintains a stable and significantly smaller world export share of 1–2% only over the last decade. Balance of trade remains unfavourable for India in last decade.