India & China - Growing Economic Ties *



Case Code : CLIBE064
Publication date : 2005
Subject : Business Environment
Length : 04 Pages


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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet discusses bilateral trade relations between India and China. It analyzes the issues to be addressed to strengthen economic ties between India and China and explores reasons for the advances in the Chinese economy. It looks at the potential exports that India can make to China


Bilateral trade between India and China.
Growing economic relations between India and China.
The disagreement over trade imbalance between the two nations i.e. India and China.


"China is poised to become India's largest trade partner in two-three years, next only to the U.S. and Singapore."

- Union Commerce Minister, Kamal Nath, in April 2005.

India and China – two of the largest developing countries of the world have many common concerns for their economic development. Though both of them are neighboring countries, bilateral relations between them went through rough times during various occasions in the past. However, of late, things have changed for the better.

Questions for Discussion:

1. Comment on Brazil's history of inflation.
2. Do you believe in Goldman Sachs report that Brazil is going to be one of the top six economies in the world by 2039? Justify your answer.

Key words:
India, China, developing countries, bilateral relations, economic growth, modernization, liberalization, literacy rate, health care system, global market, economic reforms, Foreign Direct Investments (FDIs), Joint Study Group (JSG), Indo-China trade, exports, manufactured goods, raw materials, Wen Jiabao (Wen), Free Trade Agreement (FTA), Manmohan Singh, trade balance, IT and IT enabled services (ITES), tourism, financial sector, bio-technology

* This caselet is intended for use only in class discussions.
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