India-China Economic Relations in the Light of Covid-19
Abstract
India and China's business relationship is characterized by a mix of cooperation and competition, with each country making an effort to highlight its advantages and get around its weaknesses. This combination of cooperative and competitive behavior is exemplified in the trading relationship. In a number of organizations and financial institutions, including the Belt and Road Initiative, the Asian Infrastructure Investment Bank, and the Shanghai Cooperation Organization (SCO), India and China collaborated. However, they are also involved in a large number of trade and economic conflicts, including disagreements over borders as well as concerns around trade inequality and access to business.
There were various challenges in India's commercial dealings with China. The fundamental issue at hand is the imbalance in trade, which sees China shipping more goods to India than it does to India sending goods to China. The disparity in trade that existed between the two countries was the root cause of the issue that India was having trouble resolving. India's rising concern about the issue is another challenge brought on by China's expanding economy and economic dominance in South Asia. There are, however, a variety of ways in which China and India may cooperate to progress their economies. The potential for cooperation between the two countries is great in many different areas, including but not limited to infrastructure, alternative energy, and technology. India is making a concerted effort to boost its exports to China in a number of sectors, including those involving information technology, pharmaceuticals, and agricultural products. It has been noted that the COVID-19 epidemic has made the economic situation worse, which has caused both nations to restrict their exports of medical goods. In spite of the challenges, India and China have demonstrated a desire in fortifying their economic connections. This is clear from the present debates over the regional trade deal and the initiatives to improve bilateral commerce.
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