July 27, 2024 10:15 (IST)
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India-China Trade India’s ambitions can foster complementarity with China, reports Global Times
New Delhi/IBNS: There has been no shortage of pessimism regarding economic and trade relations between India and China, as Chinese companies are bearing the brunt of the most severe crackdown due to New Delhi's "tendency to generalize security issues in its China trade policy", though the latest data may indicate a different trend, serving as a reminder not to overlook the complementary strengths of both economies, according to a report by the Chinese Communist Party (CCP)-owned Global Times.
With a two-way commerce volume estimated at $118.4 billion, China has replaced the United States to become the largest bilateral trading partner of India for the fiscal year 2023-24.
According to economic think tank Global Trade Research Initiative (GTRI), India's exports to China rose by 8.7 percent.
After the United States became India's largest bilateral trading partner in fiscal years 2021-22 and 2022-23, this change in the South Asian nation's top trading partner status may come as a surprise to many, especially considering the tensions between New Delhi and Beijing, and India's scrutiny of Chinese companies, reports Global Times.
Global Times reported that the unexpected development underscores the potential for economic and trade cooperation between India and China, showcasing how the acceleration of the Indian manufacturing sector's development is leading to increasingly complementary economies.
China has a well-developed industrial system, solid manufacturing foundation and cutting-edge technologies in many sectors, while India has advantages in the services sector, particularly in information technology services, as per Global Times.
According to the Chinese state-owned newspaper, with the implementation of the "Make in India" strategy, the country's needs for industrial chain support have increased, especially in technology- and capital-intensive products.
This situation offers new market and collaboration prospects for China's manufacturing sector, reported Global Times.
Global Times reported, citing trade figures compiled by the GTRI, that in fiscal year 2023-24, India's imports from China increased by 3.24 percent to $101.7 billion, while exports to China reached $16.67 billion.
It is essential to attach great importance to this imbalance and find solutions to promote the healthy and long-term development of bilateral trade between the two Asian nations, according to Global Times.
The Chinese newspaper opined that promoting the localization of Chinese companies in India is a crucial strategy to address the existing imbalance, while by establishing production bases in India, Chinese companies can generate more employment opportunities and stimulate the growth of the local economy, ultimately aiding in the reduction of the trade deficit.
India and China can also enhance collaboration in science, technology and innovation, facilitating technology exchange and industrial advances through the establishment of joint research and development centers as this initiative could incentivize companies from both nations to pursue partnerships in various fields, including renewable energy, information technology and other emerging industries, thus diversifying their trade structures and uncovering additional business prospects to mitigate trade imbalances, according to Global Times.
The Global Times, in its report, expressed hope that by leveraging their complementary strengths and exploring opportunities for collaboration, China and India can forge a more stable and prosperous trade relationship that mutually benefits both countries.
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