India China Relations: It’s All About Money Honey

 When Chinese premier Wen Jiabao made his long awaited visit to the Indian republic, he was dead sure at the rock solid economic ties with world’s largest democracy and an emerging super power. The most lucrative focus he tried to make was to enforce highly beneficial business treaties with each other and a sustained business relationship in long run.

A Shadow beyond war:

After cold bilateral relations finally both the countries have decided firmly on rebalancing the financial transactions between the two Asian powers.  The enhanced trade facilitation that China allowed to India is evident in the Pharma, IT and Engineering domain and the wholesome amount of this deficit is around USD 20 billion. With the possible financial treaties with India, China was all set to the combat the rising inflation mess in the country. In current scenario various Chinese financial institutions are keying their focus on infrastructure financing to prevent excess money supply from adding to inflation.

Despite all the decorum to depict a gradual growth in dipping warmth, trust deficit seemed high during the China’s premier journey. The unfortunate war in 1962 already had created the enough damage as it created notable variations in India’s diplomatic, ideological and bilateral relations with India. Earlier China was bit concerned due to the growing fraternity of Indian leaders and diplomats with Russia and USA however the picture is bit changed now. Currently China is placed in different circumstances with world’s big economic power and political setup.

If trade experts are to be believed, in year 2006 bilateral trade between India and China was registered around US$ 25.05 billion. The race continued with US$ 38.69 billion in 2007 and US$ 51.8 billion in 2008. India’s major export to the China comes in the form of iron ore, cotton, organic chemicals and copper.

Trust Deficit still prevails:

Several trade theories are prevailed about the trade between two countries but the essence behind every theory extends that within some years to come China and India will be the two largest and strongest economies in the world. Several global economic statistics say that India could be the most preferred trade partner of China after the US, the EU, and Japan. The trade relation between two countries is also a trendsetter for the mutual partnership since a number of companies have established and exchanged their presence in the both the countries. Indian ventures like Bharat Forge, TCS, and Infosys could be spotted in China and likely Haier and Huawei have setup their ventures in India. The global phenomenon that’s now being witnessed in the South Asia is all ready to set new dimensions in the global trade and mutual relationship.


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