Sino-Indian strategic economic dialogue- treading a cautious corridor

Sino-Indian economic relations have continued to burgeon despite occasional political or diplomatic rumblings on both sides. Not only has the trade volume jumped from  US$ 200 million in 1988 to US$ 61.7 billion in 2010, more commendably both economies have managed to stave off the destabilization resulting from the 2008 global financial crisis. Together, the two countries account for one-fifth of the global economy and are projected to represent one-third of the world’s income by 2025. Yet, most analysis on their combined economic growth or potential is either exaggerated or oversimplified.

Concerns are increasingly being voiced over the huge bilateral trade deficit as India’s exports to China constitute a mere US$20.8 billion of the entire volume, while its imports from China are estimated at US$40.9 billion. The question that begs attention now is what are the areas where one could possibly see these two Asian giants compete with each other? And will the economic relations between the two countries prove mutually beneficial or the competitive tenor will be more evident?