Editor's button · 2024.06.12

The results of the Indian election were finally announced in the early morning of June 5, local time.The Indian People's Party led by the current Prime Minister of India, the Indian People's Party, did not unexpectedly maintain the largest party status of the Indian People's Court.form a cabinet.For a long time, the high -speed growth of the Indian economy has been one of the most important political achievements by Modi.During the election, Modi said that his goal was to make India change from the fifth largest economy in the world to the world's third largest economy during the third term.So, what is the prospect of China -India trade in the future? This article discusses this theme from the perspective of India.

China and India are close trading partners.According to data from the Ministry of Commerce and Industry of India, in fiscal year 2022-2023, India is India's second largest trading partner, the largest import source country, and the fourth export market.Professor Santosh Pai, the author of this article, analyzed the trade relations between China and India and believed that India would reduce its dependence on imported products in India.In response to the investment relationship between the two countries, the author emphasized that India's investment in India has begun to recover, and the trade cooperation between the two countries in the future will continue to develop.

Today's topic is the trade and investment bond between China and India.When it comes to trade, the level of trade between China and India has continued to increase and increase year by year. In 2010, it basically reached a level of about 100 billion.However, due to the problem of subsequent trade structure, India's exports are difficult to grow, but India's exports to India have been growing rapidly.

India is dependent on India's import

India has a certain dependence on Indian imports.Affected by the epidemic, in 2020, many countries are facing huge challenges in trade, and they need to cope with continuous diversification of their own trade strategies.At that time, India proposed a lot of specific mechanisms and practices.For example, further strengthening industrial manufacturing and expanding domestic capacity, thereby reducing dependence on imports, especially reducing dependence on imported products in India.From the perspective of trade, there are about 220 imports of imported goods in India in 2019, of which 80%are imported from India.Now, regardless of the political relationship between the two sides of India and China, this dependence is difficult to continue to support the sustainable development of Indian society.Jaipur Stock

A Xiaomi store in Gulgang, India

(Source: Agence France -Presse)

India's investment in India began to recoverHyderabad Wealth Management

In terms of investment, India has always followed the international trend and cautious review of Indian investment has become one of the conventional practices.In April 2020, India has issued a provision: Any investors who borders Indian territorial countries or companies with related backgrounds need to be reviewed.Later, the border conflict in the Galwan Valley area has led to the delay in the review of India and the Hong Kong Special Administrative Region in India and the Hong Kong Special Administrative Region in India.But even if it has "high limit" for Chinese capital, India still faces the three major contradictions in dealing with Chinese capital:

First, most India's investment uses right and non -direct investment toolsSimla Stock. The Indian government has no way to monitor or review the investors behind it, and it is difficult to consider the impact on the Indian economy.

Second, India's investment in India is very largeJaipur Investment. From 2014 to the present, India's investment in India has been growing.In fact, within three months of the first quarter of 2020, India -China has reached a very high trade amount, even higher than the amount of the past year.In order to maintain such an efficient investment, India began to consider relaxing the FDI review mechanism.

Third, India's investment towards many unusual areas in India.For example, some small loan companies in India have experienced a large amount of capital to the Indian market after experiencing the Indian government's P2P (PEER to Peer, that is, point -to -point network borrowing), and began to do P2P Internet lending in the Indian market.However, because these small loan companies did not get relevant regulatory licenses at the time, this challenged India's laws and regulations, and the same is true for India's economy.This is why China and India have the mutual impact between China and India in trade and investment.

In November 2023, Foxconn in Taiwan stated that it would invest $ 1.5 billion in India as part of its latest expansion plan (source: Reuters)

In the past three years, more and more Indian companies have become a part of the global supply chain, and India's investment in India has begun to recover.At the same time, India has gradually relaxed restrictions on India's investment.More Indian companies have obtained the permission of the Indian government and built factories in India; some Indian companies have further strengthened their investment in India.

For Indian companies, is it just at the time of their investment in India?In fact, in addition to the consideration of the external environment and policy stability investing in India, in the past two decades, trade cooperation between India and China has been developing. Therefore, we can believe that related trade and investment issues in the future will beGet the proper resolution of the two governments.

Santosh Pai: Delhi partner of India Dahengzhu Cheng Law Firm, honorary researcher at the Delhi China -India Research Institute.

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