A plan for deeper India-China engagement

Over the years, India has persistently run a bilateral trade deficit with China

Would not all-round economic engagement between China and India be in the mutual interest of both nations? Most of the discussion in India on economic relations with China is focused on short-term trade and investment issues. But huge mutual benefits are possible in the medium- and long-term if the two countries can strategise and develop expanded and deeper linkages. 

Whilst China is India’s largest bilateral trade partner ($100 billion in 2018-19, having grown from a mere $2 billion in 2002), the Sino-Indian trade relationship is still modest — even lower than that between China and Vietnam. China and India invest