India-China trade and investment flows: Prospects and challenges to expand their relationship

Abstract

India and China are two most powerful countries in ASIA who are growing at a rapid pace to economic superpower. Looking at the political and strategic environment of both countries, it is quite clear that the trade relation is at the increasing rate. Current business decision and many trade relations between two countries also explain the growth in bilateral trade investment of India and China . The growth rate of the two countries can also be explained by GDP growth rate. The GDP growth rate clearly depicts that the both countries are growing at a fast rate. The GDP growth rate suffered a deep due to economic recession in 2008. The growth rate of India for last three years shows an increasing trend due to change in calculating GDP base. But China has slowed down which can be due to different reasons stated below.