CHINA IN 1980s

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India in 1980s
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CHINA IN 2010
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INDIA IN 2010

Trade relations between two Asian giants

Presented to-

INDIA & CHINA

Presented ByPriya Maloo(7257 ) Swati Pahwa(732

Dr.Ranjan Upadhyay Senior Faculty FMS-WISDOM

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Topics to be covered1 Basic information of 2 countries 2 Comparison between India and China 3 Import and Export Volume 4 Bilateral trade flows 5 Import and export items 6 Trade disputes 7 Trade settlement 8 Why India lag behind China? 9 India & China-friend or foes? 10 Roadblocks in trade relations 11 Stumbling blocks in trade relations 12 Strategic dimensions 13 Analyzing the backdrop 14 What India and China can do together? 15 Future prospects and suggestive measures 4/23/12 16 Recent news

Analogy representing Indo-China relationship

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FACTS GDP GDP growth Inflation Labor force FDI World prosperity index Mobile users Internet users Foreign exchange 4/23/12

INDIA $ 1.3213 trillion 8.9% 8.62% 467 million $ 12.40 billion 88th position 842 million 123.16 million $ 2.41 billion

CHINA $ 4909.28 billion 9.6% 4% 813.5 million $ 9.7 billion 58th position 687.71 million 81 million $ 2.65 trillion

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AGRICULTURE
INDIA CHINA

4/23/12 Traditional methods

Modern

Information technology & BPO

India enjoys an upper hand over China in IT & BPO industry 4/23/12

Liberalization
China India

China was an early Bird in initiating liberalization in 1980 whereas Indias liberalization took place 4/23/12 in 1991.

INDIA

CHINA Infrastructu re

China has well developed infrastructure facilities in comparison to India in terms of 4/23/12

Capital Bombay Stock Shanghai Stock market Exchange Exchange

Shanghai stock exchange (SSE) larger than BSE in terms of capitalisation with US $1.7 trillion & 849 listed Cos in comparison to BSE with US $ 1 4/23/12

Company Management capabilities INDIA CHINA

India enjoys an upper hand in terms of company management capabilities because its not the Chinese exports that drove their economy rather its the export product of its outsiders who set up their industries in China. 4/23/12

Mergers & Acquisitions

Indian companies are rapid in doing Mergers & Acquisitions in comparison to Chinese 4/23/12 companies.

Imports volume of India and China

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Exports volume of India and China

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Trade volumes between India and China in Billions

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Import items from China to India

Electrical Machinery

Machinery Plastic Organic Chemicals and Inorganic

Manmade Filament, Fabric Impregnated Text Fabrics

Chemicals

Silk; Silk Yarn, Fabric Vehicles Mineral Fuel, Oil Etc Aluminum

Iron And Steel, Iron/Steel Products Rare Earth Metals Fertilizers

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Export items from India to China.

Machinery Plastic Ores, Slag, Ash Iron And Steel Metals Organic Chemicals Salt
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Hides And Skins Artificial Flowers, Feathers Tanning, Dye, Paint, Putty Precious Stones Fish And Seafood

Trade Disputes
Fraudulent trade practices Tall claims broken by Chinese companies Building a relationship of distrust Problems faced by Embassies .

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Trade Settlements Advisory committee's suggestions:

Company should desist making an advance payment Company should operate through bank guarantee Company must not release Letter of credit without inspecting

INDIA

CHINA

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Why India lag behind China ??

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INFRASTRUCTURE DIFFERENCE

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DIFFERENCE IN TRANSPORT MODES

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HARE AND TORTOISE

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COULD INDIA CATCH CHINA BY

NOW

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BY 2030

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Friends OR FOES?

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See-saw like relationships China seen as a threat to India Road-Blocks in relations Stumbling Blocks in relations
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ROAD-BLOCKS
v

No territorial ambition

Chinas image as a benefactor to Pakistan

v

Soviet Union invasion in Afghanistan

v

Indias possession on Tibetan Autonomy

v

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STUMBLING-BLOCKS
More commonalities than difference
v

a)Agreement upon bilateral trade

v

Exports and imports Indian companies in China

a)Cadilla b)Workherdt c)Torrent d)Infosys e)Tata imports
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f)Lupin lab.

SINO-INDIAN TIES:
The strategic dimension
v

Improved trade at the grass root level Joining ASEANs collaborate India joining Chinas Shanghai co-operation China joining SAARC Establishment of common market Future relations
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What the two giants can do together?

v

Improve bilateral trade Steel,constructions,minerals,auto components, software,travel and tourism,etc

Co-operation including Chinas stance on Sikkim and Indias on Tibet Reshaping Global economic and security system

Opening up Agricultural markets Oil exploration and purchase agreement Tariff rationalization Educational exchanges Cultural exchanges and public diplomacy
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ANALYSIS OF THE BACKDROP

Need to improve economic and political relations Moving forward to the global arena
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FUTURE PROSPECTS AND SUGGESTIVE MEASURES

1.Sub regional co-operation
v

Health care Energy Education Environment

2.Foreign Direct Investment

v

Indias focus on its strengths

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3.Trade Scenario
v

China as the second largest oil consumer in the world Natural gas as an important source of trade Joint ventures of steel production Renowned Indian companies entering into the Chinese market Investment in intellectual capital

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Chinas products exhibition to be held in Mumbai Oversees energy deals: India catching up on China
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