THE FOREIGN TRADE BETWEEN INDIA AND CHINA: A STUDY ON AGRICULTURAL

GOODS TRADE

The background and academic context:The growth and economic integration of India and China in the international
economy has changed the investments and trade flows in the international market. The
rapid economic integration of China and India in the world economy has changed the
trade and investment flows. Following which even the Asian continent has witnessed a
structural shift in trade practices viz. from multilateral to sub-regional to bilateral trade
agreements. India and China have been in bilateral relation for more than two centuries.
Their millennia-old relation is strongly based on continuous exchange of culture,
heritage, goods and services.1 The trade relation between both the parties has caught
impetus with initiation of sub-regional and bilateral regional cooperation in areas of
mutual benefits. Our exports to China and our imports from China have noted a seachange from the pre-to-post liberalisation period.
OBJECTIVE OF STUDY
The following paper has been written with the objective to analyse the changes in
Indias trade with China since the liberalisation of its trade. The other objectives
covered are:
1. To study the commodity composition of Indias trade with China.
2. To study the relative comparative advantage of India over China in export of
agricultural and allied commodities in world market.
3. To analyse the trend of trade intensity with China during the period 2001-02-201213.