PROJECT REPORT

ON

“INDO-CHINA TRADE RELATIONS”

“A critical analysis”

INTRODUCTION

India and China are the two largest countries in the world in terms of population; they are also

the fastest growing economies in the world. India and China together are home to the world’s

largest pools of skilled human resources, and there is a general consensus that these two

countries will continue to be the engines of global economic growth in the 21st century. Both

China and India have also consciously deepened their economic relations within Asia as is clear

from their dialogue partnership with ASEAN and signing of framework agreements for closer

economic cooperation with it in 2002 and 2003 respectively.

An Overview of China-India Economic Relations :

China and India established diplomatic relationships on 1st April 1950. India and China resumed trade officially in 1978. Both the countries signed a Trade Agreement (Most Favored Nation Agreement) in 1984. Since 1988 when it was decided to extend the India-China relationship at various levels, an elaborate framework for promoting trade and economic relations has evolved over time.

In 1994 the two countries signed agreements on avoiding double taxation. Agreements for cooperation on health and medical science, MOUs on simplifying the procedure for visa application and on banking cooperation between the two countries have also been signed. Bilateral trade with China during 2004 has crossed the $ 10 billion mark.

India-China total trade in goods for 2012 stood at US$ 66.57 billion, recording a decline of almost 10%. This decline in overall bilateral trade can be attributed to decline in both India’s exports to China (@20%) and India’s imports from China (@5%). Commodity-wise, bilateral trade was dominated by reactors, boilers, machinery, etc.; electric machinery, sound equipment, etc.; organic chemicals; ores and cotton. India’s exports to China for 2012 reached US$ 18.8 billion, recording a decline of more almost 20% y-o-y whereas imports touched a total of US$ 47.75 billion, recording a decline of more than 5% over the figure for 2011. Trade deficit for India for Jan-Oct, 2012 stood at US$ 29 billion.

In 2012, India was the 15th largest trading partner of China with a share of 1.72% in China’s overall trade, recording a decline of almost 10% y-o-y; 7th largest export destination for China, comprising a share of 2.33% of overall Chinese exports and 19th among the countries exporting to China with a share of 1.1% in overall imports by China.

BILATERAL TRADE FIGURES FOR YEAR 2014:

Highlights:

India-China total trade in goods for year 2014 stood at 39,990,795 lack, recording a Rise of almost 12%

India’s exports to China for 2014 reached Rs 9,059,278.33 lakh, recording a Rise of more almost 23%.

China’s exports to Indiarecording a rise of almost than 1.5% over the figure for 2013

The overall bilateral trade figures for year 2014of Commerce are as follows:

(Value in USD Million)

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

2012

Amou

nt

Total India-China TradeGrowth %

Share %

India’s Exports to China

Growth %

China’s Exports to IndiaGrowth %

India for 2014 China touched a total of Rs 30,931,516.77 larecording a rise of almost than 1.5% over the figure for 2013.

The overall bilateral trade figures for year 2014 released by the Department of Commerce are as follows:

2013 2014Year

India China Trade Figure

2012 2013

73,390.13 65,783.2124.47 -10.37

9.23 8.32

18,076.55 13,534.8816.75 -25.12

55,313.58 52,248.3327.22 -5.54

30,931,516.77 lakh,

released by the Department

Import from China

Export to China

India China Trade

2014

65,878.320.14

8.62

14,829.319.56

51,049.01-2.30

INDIA’S EXPORTS TO CHINA FOR THE YEAR 2014:

India exported 750,519 shipments Shipments under HS Code 5201

by shipments under HS Code 740315.9% and 12.1% of exports respectively.

HIGHLIGHTS:

Aircraft, spacecraft, animal or vegetable fats and oils and their cleavage products; pre. Edible fats; animal or vegetablemineral oils and products of their waxes, nuclear reactors, boilers, machinery and mechanical appliance,slag and ash. , organic plastering materials, lime and cementexport basket.

Among the products exported from India to China, iron ores, slag and ash (HS 26) and cotton, including yarn dominant share of 36%.

Nickel and articles thereoftobacco and manufactured tobacco substitutes

INDIA’S EXPORTS TO CHINA FOR THE YEAR 2014:

750,519 shipments valued at USD 14,829.31 MillionHS Code 5201 accounted for 20.1% of the exports by value followed

HS Code 7403 and HS Code 5205 which 5205 which accounted for of exports respectively.

animal or vegetable fats and oils and their cleavage products; pre. Edible fats; animal or vegetable waxex, copper, cotton, mineral fuels,

and products of their distillation; bituminous substances; mineral nuclear reactors, boilers, machinery and mechanical appliance,

organic chemicals, plastic, salt; sulphur; earths and stone; plastering materials, lime and cement. etc. continued to dominate the Indian

Among the products exported from India to China, iron ores, slag and ash (HS 26) and cotton, including yarn and fabric (HS 52) together constituted a dominant share of 36%.

Nickel and articles thereof. (HS 75); cocoa and cocoa preparations. tobacco and manufactured tobacco substitutes.(HS 24); aircraft, spacecraft, and

to China. of the exports by value followed

which accounted for

animal or vegetable fats and oils and their cleavage products; mineral fuels,

distillation; bituminous substances; mineral nuclear reactors, boilers, machinery and mechanical appliance, ores,

salt; sulphur; earths and stone; . etc. continued to dominate the Indian

Among the products exported from India to China, iron ores, slag and ash (HS and fabric (HS 52) together constituted a

cocoa and cocoa preparations. (HS 18);aircraft, spacecraft, and

parts thereof. (HS 88) and aluminium and articles thereof (HS 76) recording increase of 5630%, 142%, 844%, 543% and 4727% respectively.

(Data Source: Department of Commerce)

SN HS Description Value in RS. LACKS % Change14/13

2013 2014

India 13,534.88 14,829.31 9.56

1 26 Ores, Slag And Ash 1,897.67 1,570.45 -17.24

2 52 COTTON. 3,410.51 3,833.41 12.403 74 Copper And Articles Thereof 2,010.97 1,841.65 -8.424 71 Nat Etc Pearls, Prec Etc Stones, Pr Met Etc;

Coin87.69 125.52 43.14

5 29 Organic Chemicals 1,019.64 917.77 -9.996 39 Plastics And Articles Thereof 629.05 556.08 -11.607 25 Salt; Sulfur; Earth & Stone; Lime & Cement

Plaster608.15 677.71 11.44

8 84 Nuclear Reactors, Boilers, Machinery Etc.; Parts

434.85 481.24 10.67

9 27 Mineral Fuel, Oil Etc.; Bitumin Subst; Mineral Wax

326.08 1,028.35 215.36

10 15 Animal Or Vegetable Fats, Oils Etc. & Waxes

378.32 293.88 -22.32

11 41 Raw Hides And Skins (No Furskins) And Leather

99.20 122.82 23.81

12 85 Electric Machinery Etc; Sound Equip; Tv Equip; Pts

244.58 303.70 24.17

13 72 Iron And Steel 300.43 322.79 7.4414 67 Prep Feathers, Down Etc; Artif Flowers; H

Hair Art159.87 191.84 20.00

15 88 AIRCRAFT, SPACECRAFT, AND PARTS THEREOF.

9.62 411.19 4,172.95

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

$3,500.00

$4,000.00

$4,500.00

HS 26 HS 52 HS 74

1%7%

4%

5%

4%

8%

2%1% 3%

3%

HS 71 HS 29 HS 39 HS 25 HS 84 HS 27 HS 15 HS 41

Exported Items

2013 2014

12%

30%

15%

2%3%

Distribution of Export ItemsHS 26-Ores, Slag And Ash

HS 52-COTTON.

HS 74-Copper

HS 71-Nat Etc Pearls

HS 29-Organic Chemicals

HS 39-Plastics And Articles

HS 25-Salt; Sulfur; Earth & Stone

HS 84-Nuclear Reactors, Boilers, Machinery Etc

HS 27-Mineral Fuel, Oil Etc

HS 15-Animal Or Vegetable Fats

HS 41-Raw Hides And Skins

HS 85-Electric Machinery Etc

HS 72-Iron And Steel

HS 67-Prep Feathers, Down Etc

HS 88-AIRCRAFT, SPACECRAFt

HS 41 HS 85 HS 72 HS 67 HS 88

Ores, Slag And Ash

COTTON.

Copper

Nat Etc Pearls

Organic Chemicals

Plastics And Articles

Salt; Sulfur; Earth & Stone

Nuclear Reactors, Boilers, Machinery Etc

Mineral Fuel, Oil Etc

Animal Or Vegetable Fats

Raw Hides And Skins

Electric Machinery Etc

Iron And Steel

Prep Feathers, Down Etc

AIRCRAFT, SPACECRAFt

India’s Import from China :

India imported 16,332,302 shipments valued at USD 118.56 Billion from China.

Top items imported from china includes:

Electronic equipment: Machines, engines, pumps Organic chemicals Fertilizers Iron or steel products Plastics Medical, technical equipment Gems, Precious metal and coins Vehicles

Major Importing Items with Harmonized System Codes (HS Codes) are mentioned below with the value of their Shipments.

Shipments under HS Code 8517 accounted for 12.2% of the imports followed by shipments under HS Code 8471 and HS Code 9801 which accounted for 5.7% and 5.0%of imports respectively.

Imports Shipment from China:

Month Total Value Of ImportsJanuary 2014 3,950,825,441February 2014 3,325,734,598March 2014 3,437,836,442April 2014 3,859,739,129May 2014 4,172,842,621June 2014 4,143,541,713July 2014 4,328,218,125

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

$4,000,000,000

$4,500,000,000

$5,000,000,000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

Total Value Of Imports

Total Value Of Imports

Harmonized System Codes of Top Importing Items:

Sub Chapters Items Included

8517 Telephone sets, including telephones for cellular networks or for other wireless networks

8471 Automatic data processing machines an units thereof; magnetic or opticalreaders.

9801 All items of machinery including prime movers, instruments, apparatus and appliances, control gear.

3105 Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphate

8528 Monitors and projectors, not incorporating television reception apparatusReception apparatus for television, whether or not incorporating radio-broadcast receivers or sound

2941 Antibiotics

3102 Mineral or chemical fertilizers

2942 Other organic compounds

7106 Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms

8541 Diodes, transistors and similar semi-conductor devices; photosensitive semi-conductor devices

2933 Heterocyclic compounds with nitrogen hetero-atom(s) onlyCompounds containing an unfused pyrazole ring (whether or not hydrogenated) in the structure)

7304 Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel

8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely

8414 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods

Total Value of Each Importing Item and Their Shipment:

Sub Chapter Total Value (USD) No. Of Shipments Avg. Value per Shipment

8517 14,559,691,095 844,900 17,2328471 6,805,434,422 409,918 16,6029801 5,953,163,199 16,560 359,4913105 2,269,834,772 2,053 1,105,6188528 2,062,206,764 52,575 39,2242941 1,992,802,901 17,150 116,1983102 1,842,273,252 803 2,294,2382942 1,642,042,154 25,963 63,2458541 1,549,531,984 193,111 8,0247106 1,484,296,006 424 3,500,6982933 1,480,977,275 21,391 69,2347304 1,398,347,181 50,928 27,4578708 1,274,187,857 209,612 6,0798473 1,271,076,803 458,377 2,7738414 1,260,933,795 126,197 9,992

61%

12%

6%

5%

2%

2%

2%2%

2%1%

1%1%

1%1%

1%

Import Distribution

8517-Telephone sets

8471-Automatic data processing machines

9801-All items of machinery

3105-Mineral or chemical fertilizers

8528-Monitors and projectors

2941-Antibiotics

3102-Mineral or chemical fertilizers

2942-Other organic compounds

8541-Silver

7106-Diodes, transistors and similar semi

2933-Heterocyclic compounds

7304-Tubes, pipes and hollow pr

8708-Parts and accessories

8473-Air or vacuum pumps

other

Telephone sets

Automatic data processing machines

All items of machinery

Mineral or chemical fertilizers

Monitors and projectors

Antibiotics

Mineral or chemical fertilizers

Other organic compounds

Silver

Diodes, transistors and similar semi-conductor devices

Heterocyclic compounds

Tubes, pipes and hollow pr

Parts and accessories

Air or vacuum pumps

Reason behind Current Account Deficit from China:

The imbalance is mainly because India has limited exports to China, while Chinese

manufactured goods have a competitive advantage in the Indian market.

Competitiveness in areas like manufactured goods and readymade garments is being

challenged by other contraries.

Chinese government's tightening policies in the real estate sector, reduced demand for

Indian raw materials - mainly iron ore and iron sand, which account for the bulk of Indian

exports to China.

“Indian officials say the iron ore exports from India also fell due to investigations into

allegations of corrupt practices in mine sector. China's imports from India mainly

comprise raw materials specifically iron ore so this is the one of the reason behind India’s

current account deficit.”

India imports a large number of manufactured capital goods, which are much cheaper to

purchase from China than elsewhere.

India has to grow in manufacturing led exports because we are not a country very much

endowed when it comes to some of the natural resources which need for our economic

growth particularly energy

Not good in manufacturing…

so India has to grow in manufacturing led exports because we are not a country very

much endowed when it comes to some of the natural resources which need for our

economic growth particularly energy. This will help to decrease in trade deficit.

Limited market access to Indian products in China is one of the major reasons for

widening deficit.

The limited market access afforded to Indian products in China is also a contributing

factor to the growing trade deficit. Indian IT services exports also face barriers in China

and therefore unable to compensate for the deficit on account of our merchandise trade

with China.

Decline in export of agriculture products like coffee, tea, spices, sugar etc.

Too much depend on China for electronic products.

Government restrictions :

There are number of export products on which restriction have been levied by the custom

department and department of commerce which requires prior approval from this

departments before exporting those products which involve lots of paper work, which

leads to corruption and thus create problem for new person who wants to enter in this

trading business leading to deficit export.

No initiative is taken by this department to educate people about different government

benefits available for them in trading internationally and how can they claim them rather

than just issuing books containing policies.

Potential for Expansion in Trade :

By exploring the export performances and specialization patterns of China and India, we assess

their trade competitiveness and complimentary vis-à-vis each other as well as with the rest of the

world. Our analysis indicates that

India faces tough competition from China in the third markets especially in clothing,

textile and leather products.

There is a moderate potential for expanding trade between the two countries.

China poses a challenge for the East Asian economies, the US, and most of the European

countries especially in medium technology industries.

India appears to be a competitor mainly for its neighboring South Asian countries.

Complementary exists between the imports of China and India, and the exports of the US,

some European states and East Asian countries, especially Japan, Korea, Malaysia,

Singapore and Thailand, implying opportunities for trade expansion; and finally.

The export structure of China is changing with the exports of skill intensive and high

technology products increasing and those of labor-intensive products decreasing

gradually. This suggests that challenges created by China in traditional labor-intensive

products might reduce in the long run.

With the growth in bilateral trade between India and China in the last few years, many Indian

companies have started setting up Chinese operations to service both their Indian and MNC

clientele in China. Indian enterprises operating in China either as representative offices,

Wholly Owned Foreign Enterprises or Joint Ventures with Chinese companies are into

manufacturing (pharmaceuticals, refractory’s, laminated tubes, auto-components, wind

energy etc.), IT and IT-enabled services (including IT education, software solutions, and

specific software products), trading, banking and allied activities. While the Indian trading

community is primarily confined to major port cities such as Guangzhou and Shenzhen, they

are also present in large numbers in places where the Chinese have set up warehouses and

wholesale markets such as Yiwu. Most of the Indian companies have a presence in Shanghai,

which is China’s financial center; while a few Indian companies have set up offices in the

capital city of Beijing. Some of the prominent Indian companies in China include Dr.

Reddy’s Laboratories, Aurobindo Pharma, NIIT, Bharat Forge, Infosys, TCS, APTECH,

Wipro, Mahindra Satyam, Dr. Reddy’s, Essel Packaging, Reliance Industries, SUNDARAM

Fasteners, Mahindra & Mahindra, TATA Sons, Binani Cements, etc. In the field of banking,

ten Indian banks have set up operations in China. State Bank of India (Shanghai), Bank of

India (Shenzhen), Canara Bank (Shanghai) and Bank of Baroda (Guangzhou), have branch

offices, while others (Punjab National Banks, UCO Bank, Allahabad Bank, Indian Overseas

Bank, Union Bank of India etc.) have representative offices. Apart from PSU banks, private

banks such as Axis, ICICI also have representative offices in China.

According to information available with the Embassy of India, close to 100 Chinese

companies have established offices/operations in India. Many large Chinese state-owned

companies in the field of machinery and infrastructure construction have won projects in

India and have opened project offices in India. These include Sinosteel, Shougang

International, Baoshan Iron & Steel Ltd, Sany Heavy Industry Ltd, Chongqing Lifan Industry

Ltd, China Dongfang International, Sino Hydro Corporation etc. Many Chinese electronic, IT

and hardware manufacturing companies are also have operations in India. These include

Huawei Technologies, ZTE, TCL, Haier etc. A large number of Chinese companies are

involved in EPC projects in the Power Sector. These include Shanghai Electric, Harbin

Electric, Dongfang Electric, Shenyang Electric etc. Chinese automobile major Beijing

Automotive Industry Corporation (BAIC) has recently announced plans to invest US$ 250

million in an auto plant in Pune. TBEA a Xinjiang-based transformer manufacturer has

firmed up plans to invest in a manufacturing facility in Gujarat. During the visit of Premier

Wen to India, Huawei announced plans to invest in a telecom equipment manufacturing

facility in Chennai.

The presence of complementarities and suggests the potential of an even faster growth. At

the present rates of growth, bilateral trade is likely to cross the US$ 10 billion target in

2004/05 set by Premier Zhu Rongji. Hence, it would not be unrealistic to set a target of US$

30 billion by 2010. However, the India-China trade is still concentrated in a few products

especially the low value added raw materials and minerals dominating India’s exports. The

challenge is to make trade more broad- based and diversified in favor of manufactured goods

rather than raw materials while sustaining a healthy expansion of trade. For this, a great deal

of attention needs to be paid to trade facilitation besides addressing the issues of relevant

tariff and non-tariff barriers. It is believed that trade facilitation itself could lead to further

strengthening of the India-China economic linkages by bringing down the present level of

high transaction costs. The steps that could be considered include streamlining customs

procedures and moving towards a more comprehensive electronic data interface in customs

administration and information exchange, having a bilateral pre-shipment inspection

agreement, mutual recognition agreements on standards, and harmonization of conformity

assessment procedures among others. Trade facilitation could also cover cooperation to

facilitate trade financing and cooperation between export-import banks of the two countries.

A large potential exists for trade in services and investment. Barriers to trade in services

need to be addressed systematically to exploit the potential of trade in services for mutual

benefit. Such potential appears to exist in areas such as IT and IT enabled services,

biotechnology, education, financial sector, education, health care, tourism, among other

sectors. The potential is yet to be fully exploited. Investments can be undertaken by Indian

enterprises in China, not only for supplying the Chinese domestic market but also for exports

in the third countries. Similarly Chinese companies can explore investment opportunities in

India for domestic market and for exports. Bilateral investment flows could be facilitated by

bilateral investment protection and promotion agreement, among other policies. In addition,

an organized institutional promotion by business chambers and governmental agencies may

be fruitful. Economic relations could be further strengthened with improved transport

linkages and connectivity. While some progress has been made on air connectivity between

India and China, the frequency of direct air links is still low.

Economic cooperation between India and China also has to look beyond just promoting trade

and investment. It could cover much broader areas including: to strengthen cooperation and

information exchange between Government agencies and related institutions; exchange

development experiences and promote technology and industrial cooperation in the fields,

such as agriculture and rural development, electrical and electronics sector, project

contracting. Given the fact that both China and India are highly dependent on imports of

petroleum and gas, mutual cooperation in energy security is also of strategic importance;

exchange experiences in the management of economy, such as city management, poverty

relief and social security, development of SMEs, disaster management, water resource

management.

The cooperation between China and India will lay foundations for the two countries to

establish a Regional Trading Arrangement (RTA). It is expected that India-China RTA will

be conducive to bringing the potential of economic cooperation into full play. Furthermore,

with mutual cooperation and coordination of their positions in negotiations in WTO, they

make contributions to building a more pro-development multilateral trade and financial

architecture. China-India cooperation has the potential to benefit one third of humanity and

also promote a broader regional economic integration in Asia.

Recommendations :

For Exporters :

Exporters should be well aware of the Benefits from government as it keeps on changing.

More skilled and experienced labors should be used. They should analyze the market carefully.

For Government :

Transportation Services: A uniform system of customs valuation, duties and documentation may be

evolved across all ports of entry in both the countries.

To strengthen cooperation in transportation services, it is recommended that

China and India should ensure that ports facilitate easy movement of goods.

With increased movement of goods and passengers between India and China,

gradual increase in shipping lines and intensity of marine transportation, as

well as, increase in flights including direct flights, may be undertaken.

The two countries should work closely to improve logistics services and

reduce delays at ports. Lowering of costs and expansion of shipping and air

transport facilities could enhance competitiveness of this sector in the two

countries.

Procedures for handling goods at ports and customs clearance may be

simplified and made more efficient

Tourism and Related Services:

To facilitate trade it is recommended that related departments of both countries

conduct further discussion on the possibility of opening their markets to

individual travelers. The travel and tourism industry in each country needs to

establish its presence in the other, and develop attractive tourist packages and

products keeping in mind the consumer psyche of each country’s tourists. The

governments of both countries could provide greater facilitation for enterprises

of the counterpart to start business operations in the field of tourism services in

domestic market, such as setting up tourist offices in India and China

respectively, making available each country’s cuisine in the other through

exchange of chefs, and setting up of joint promotion councils in tourism, all of

which can greatly promote the development of tourism sector. The two

countries could also work together to promote MICE and health tourism.

Information and Communication Technology:

It is recommended that companies from India and China should continue to

explore each other’s markets. The two countries can use their core

competencies in hardware and software to increase their share of world’s trade

and gain greater access in third country markets.

Industry association such as NASSCOM may closely interact with its

counterpart organization in China to promote co-operation in this sector. Both

countries should work together to enforce copyright and reduce piracy.

Moreover, the software enterprises of both countries can easily adapt to the

ever changing high-tech market and strengthen their status in global market by

having more joint research projects, enhancing the exchange of technological

personnel and cooperation in training.

Education Services:

To promote bilateral education services, the two governments should fully implement the

bilateral visa agreement and discuss further means to promote people-to-people

exchanges including exchange of students. The Ministry of Human Resource

Development, India and Ministry of Education, China should facilitate collaboration

between the research institutes of the two countries. Exchange of students between the

two countries can be facilitated through more scholarships. Exchange of teachers will be

mutually beneficial and can be facilitated through intergovernmental agreements. In

India, there is a requirement of Chinese speaking teachers while in China there is a

requirement of English speaking teachers. Governments of the two countries can

facilitate the cross-country movement of qualified teachers in such areas. The two

countries should remove restrictions on participation of educators and trainers.

Restrictions should also be removed from offering education and training on the Internet.

India and China can also explore the possibilities of co-operation in R&D, in areas such

as biotechnology, medicine, non-conventional energy, computer software, etc. Exchange

of scientists and technical persons between the two countries would facilitate such co-

operation. India and China should negotiate a customs cooperation and mutual assistance

agreement as early as possible to improve customs supervision efficiency through

bilateral cooperation and promote trade facilitation.

CONCLUSION

This brief overview of India-China trade shows that the magnitude of trade has expanded rapidly over the past few years. This indicates the presence of complementarities and suggests the potential of an even faster growth.

Bilateral trade between the two countries have grown rapidly over the past few years indicating the presence of a vast potential for further growth. Substantial complementarities characterize the economic structures of China and India. China is emerging as a significant link in the manufacturing chain of the world while India’s potential for the knowledge-based services and manufacturing is being noticed. These complementary strengths of the two economies can be further exploited for mutual benefit. Their geographical proximity, similar cultural values, and

large size of their economies can facilitate exploitation of these synergies. They can also pool their resources for improving their international competitiveness, and can fruitfully share their development experiences and cooperate in the critical area of energy security. India- China economic cooperation has the potential to benefit nearly two fifths of humanity with spill over effects on the rest of the world. This cooperation could also be instrumental in promoting broader regional economic integration in Asia.

THE END