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Source– The post is based on the article “Why India and China are stronger as partners” published in “The Indian Express” on 2nd June 2023.
Syllabus: GS2- Bilateral groupings and agreements
News- The article explains the potential of bilateral relationship between India and China.
What are the growth prospects of the Indian and Chinese economy?
India has become the fifth-largest economy in the world. The UNCTAD ‘World Investment Report 2022’ shows that in 2021, India ranked seventh among the top 20 recipients of foreign direct investment.
India’s digital economy is growing rapidly with more than 82,000 start-ups and 107 unicorn companies.
The Chinese economy is rebounding with the first-quarter GDP growing by 4.5% year-on-year.
Employment and prices remained stable. Many international organisations and investment institutions have revised their forecasts upwards for China’s economic growth this year.
What is the potential of a bilateral relationship between India and China?
China and India are the most populous developing countries and the top two developing economies in the world. The two countries account for more than 35% of the world’s total population and more than 20% of the world’s total economic output.
China and India have a decisive impact on human development. The strong economic growth of the two countries has a vital role to play in the global economic recovery.
China and India have also made important contributions to world poverty alleviation. Over the past more than 40 years, the Chinese government has lifted more than 800 million people out of poverty.
From fiscal year 2006 to 2021, a total of 410 million people in India have been lifted out of poverty.
According to the forecast of the International Monetary Fund, the contribution of China and India to world economic growth this year will be over 50.3 per cent.
What is the way forward for India and China bilateral partnership?
Emerging economies like China and India have become important engines for the recovery of global economic growth.
There is a need to develop a strategic and long-term perspective for bilateral relations. Both countries should pursue a new path of living in harmony, peaceful development.
