A Comparative Study of India and China: Trends in International Trade

Abstract

Focussing on the comparative analysis of India and China, the paper attempts to analyse the key factors governing a huge gap between their international trade performances. A brief analysis shows there are differences in their production capacities, cost competitiveness, revealed comparative advantage and export potential, infrastructure, manpower, professionalism, logistic performance, business environment, business commitment etc. These differences are the root causes for the gulf between India’s and China’s International trade performance. Though both the countries have achieved remarkable growth in recent decades, sustained by rapid trade expansion.  Good business ranking of China (as per business indices of World Economic Forum) as compared to India has helped China secure good global positioning and active participation of foreign investors. Apart from other factors, India also needs to lessen the gulf in her ranking vis-à-vis China’s ranking in order to stand near China on the global business landscape.