Comparative Analysis of Trade India with India Mart

 Comparative Analysis of Trade India with India Mart


Introduction

"I believe that when China and India are truly strong enough to fully bring out their own spirit and style, that will truly usher in a new Asian century," Wen Jiabao [Speech delivered at the annual press conference at the end of the National People's Congress, the Chinese parliament. (Times of India, March 14, 2006)] . The expansion of our bilateral economic ties reflects the growing momentum of India-China relations. The process of engagement in the Asian region has truly taken off,” - Manmohan Singh [Keynote address delivered at the ASEAN Business Advisory Council's special leaders dialogue on December 12, 2005].

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The Asian Development Bank (ADB) recently published a report (ADB, 2011) that compares the potential outcomes for Asia under two competing scenarios: the Asian Century and the Middle Income Trap. In the more optimistic Asian Century scenario, the region's GDP is expected to reach $148 trillion in 2050, accounting for 51 percent of global output as well as half of global trade and investment. According to the report, China and India are significant contributors to global and regional growth, and it is critical for the region's major economies to maintain their growth momentum in order to lift the standard of living for millions of people.

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Conclusions

While great achievements and structural changes in trade and investment have been highlights of China's growth process over more than three decades, there are highlights of India's growth process over nearly two decades. China's globalization strategy can be summarized as follows: aggressive trade liberalization; increasing trade volume and openness; shifting focus from textile industries to electrical machinery and transportation equipment; above-average and rapid growth in product sophistication; high degree of intra-industry trade; important role of FIEs; increased TFP accompanying growth in firm R&D expenditure.

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