Abstract
The paper focuses on bilateral strategic cooperation between India and China. It started with describing and explaining the recent bilateral situation between these two countries. The comparative macroeconomic variables between these two countries are also provided to initiate the discussion and to make a better understanding of the present situation. The paper explains the overall trade dynamics between India and China, where Constant Market Share Analysis (CMS) model is used to understand the nature of export change. Using CMS, the paper analyzed the prospects of several products in each other's market. While analyzing investment, the paper examines FDI policies of China and the sectors where the Indian companies have invested. The potential sectors for the Indian companies to invest in China have also been identified. Finally, the paper concludes through describing the trade negotiation strategy of both the countries and the areas where economic synergies can be formed.
JEL: F13, F15
Keywords
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