Prospects of India’s Foreign Trade With China

Abstract

The Herculean task of economic reconstruction and industrialization beckoned the dawn of India’s independence in 1947. The goals of achieving an all round economic self-sufficiency transforming the backward agrarian Indian economy into an industrial nation and ensuring the millions a better quality of life. This warranted colossal amount of resources quite apart from building the requisite infrastructure.
India always had a surplus with the whole world including Europe, which was settled by the inflow of gold into India. But there was a steep decline in trade in the subsequent years since 1800 BC when the Aryans were ravishing most of Asia. In a variety of industries, cheap imports from China are killing local manufacturers. It needs probe as to how much profit is due to China’s competitiveness and how much due to dumping. With the advent of globalization, liberalisation, and reduction in trade import and export barriers the world has today become a tiny village. There are vase opportunities for increasing the contents of our export basket to China.Quantum of Export and Import with China is very low as compared other developed countries or the world. The composition of exports and imports with China has changed since 1991. The reduction in custom tariffs has positively contributed to trade with China. Terms of trade for India still remain unfavourable.