Bilateral Trade Between India and China Expected to Increase Further

November 19th 2011—Mumbai, India—The two fastest growing economies in the world, China and India are set to increase bilateral trade at a significant rate over the next few years. Currently, trade between the two Asian giants stand at US $60 billion and analysts believe this figure could grow at about 40 per cent per annum. Continued visits by policy makers and high level ministers from both countries and with improving relations between China and India, trade is expected to grow to a level where each country would be in the other’s top 3 trading partners in the world.

According to (, it is natural for the two countries to increase trade considerably. Both countries are amongst the top two nations for fastest growing economy as well as the two most populous countries in the world. Domestic consumption in India as well as in China has increased by astounding figures over the past couple of decades and while China is expected to become the number one economy in the world over the next few decades, India shall occupy the third largest economy status according to many analysts. Improvement of bilateral relations and more cultural exchanges between the two countries has also enabled better trade relations as entrepreneurs from both India and China are keen on exploring business opportunities in the respective countries.

As per, although currently India imports significantly higher from China than its exports to the country, this will change over the years and many more Chinese companies are expected to invest in India in various sectors including infrastructure. The recent visit by Gujarat Chief Minister Mr. Narendra Modi and the reception he received from business owners in China have clearly indicated a growing interest amongst key players from various industries to invest further in India. The same goes for Indian business owners as well who are continually looking at entering the Chinese market and catering to the biggest middle class population in the world.

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