India and China are playing a competitive and yet cooperative game on many levels of economic development activities. India's trade with China has grown rapidly but suffers from huge imbalances and is alone responsible for almost half of its trade deficit. India's export of goods and services to China is meager in comparison to its import from China. If China and India cooperate rather than compete they could become almost fifty percent of the world's economy where they were around two hundred years ago. It offers a great advantageous stand for China as it implemented economic liberalization policies thirteen years before India. On the contrary, being one of the fastest emerging economies in the world, India could not deal with the huge time gap for initiating economic liberalization. Still, there is room for harmonizing the Indo-China relationship that may bring large share of world economy under their control and the disputes in economic integration and political interests will only derail them from reaching that goal.
Export, Import, Investment, Liberalization, Trade Deficit.