India’s S.N., Bhattacharya B.N. (2007), “Gains and Losses

 India’s geopolitical relation with China(International Relations and Strategy)Submitted to- Mrs. Sharmila Devi By: Arjun Batra 3245 1 Key Issues in India-China RelationHere are some of the key issues in Geopolitical relationship of India and China which motivated me to study this topic and make this report.1. Border dispute of India and China2. China has no formal declaration that it recognizes Sikkimas on India territory.3. Tilling military balance on border.4. Dispute against Line of Actual control, and Chinese volatile northeast.5. According to Indian government “Pakistan as the root cause of deficit rust between the two countries6. Nuclear proliferation and Military competition is another importance cause of bad relationship.7. Chinese plans to divert Tibet’s rivers to irrigate China. 2 Existing scholarly work in the fieldLiterature ReviewsSingh Y., Bhatnagar A. (2011), “FDI in India and China; A comparative analysis”The study found that both enjoys healthy rates of economic growth but FDI inflow in china is higher than India.John W. (2010), “China’s FDI and non-FDI economies and the sustainability of future high Chinese growth” , this study found that foreign Invested Enterprises (FIEs), enterprises account for over 50% of China’s exports and 60% of China’s imports. Their share in Chinese GDP has been over 20% in the last two years, but they employ only 3% of the workforce, since their average labor productivity exceeds that of Non- FIEs by around 9:1.Wu Yanrui, Zhou Zhangyue (2006), “Changing bilateral trade between China and India”. In this article the author focuses on the major trends of changes in the bilateral trade between the two countries. The study explores issues associated with trade intensity, intra-industry trade and comparative advantages in the two countries. 3 Bhattacharya, S.N., Bhattacharya B.N. (2007), “Gains and Losses of India-China Trade Cooperation: A Gravity model impact analysis”. In this working paper the authors have revealed the trade intensity indices of India and China and significantly identify the trade potential between both the countries.Tseng W, Cowen D. (2005), “India’s and China’s Recent Experience with Reform and Growth”. Through this book the authors try to portray the structural change in trade regime of India and China since their liberalisation. The book provides a view of the effect of changes in reforms, on the banking and financial sector, trade relations and economic growth.  4 Current scenario of the geopolitical relationOnly fast during the last three years have India and China beggar to shed their wariness toward each other by initiating measures to stabilize their relationship, including regular high level visits. The rapprochement is based an a mutual need to focus on social and political stability and strange economic growth of security, so, each can avoid the perils of stagnation or decline.Despite growing interaction of the political, cultured and economic levels, the gulf between the two countries in terms of their perception, attitudes and expectation of each other has widened over last half century while India constantly benchmark themselves again China.The China does not want to see India play a role beyond south Asia or emerge as a peer competitor, China seems to have limited expectations from India. It is welling to develop a relationship with India. But India government is not agreed with china. Because china is not cooperating withIndia to solve boundary dispute, maintain access to capital and market benefiting from globalization etc. 5 The past year witnessed several episodes that seriously damaged China-India relations and put them on a downward trajectory. Several of these were serious but rather routine, such as the tensions around the Dalai Lama’s visit to the disputed state of Arunachal Pradesh and China’s continued blocking of the bid to design Jaish-e-Mohammed chief Masood Azhar as a global terrorist. The Sino-Indian relationship is progressively deteriorating. As China has increased its presence around India and has begun to vigorously shape Asia’s strategic landscape to its advantage, India has adopted a much tougher and more decisive stance toward Beijing. While this picture has been developing for a long time, it has emerged much more forcefully in recent years, as the rise of both powers has accelerated, Beijing’s influence in South Asia has increased and China has begun to establish the foundations of a new Asian order promoted through the BRI. This has enhanced the mistrust and the security dilemma between the two sides, already worsened by a long list of factors: instability on the border, the reinvigoration of the China-Pakistan alliance, the disappointing pace of Sino-Indian economic relations, naval and arms competition, and India’s rapprochement with the United States and Japan. The result has been a downward trajectory in China-India relations, which, if it continues unchecked, would turn the two sides into adversaries.  6 CONCLUSIONIn short, China and India need to choose the future course of their relationship, and it is increasingly likely that ties would go in the wrong direction. The costs and risks of such a turn of events would be formidable, as would the missed opportunities for cooperation, trade ,and investment between Asia’s two giants. To avoid such an outcome, both sides need to rethink their policy vis-à-vis each other and reshape their relationship.Both have great power and the most populous countries are back as claimants to preeminence in Asia and the world. Both are heavily engaged in the global economy and passes nuclear powers to match their growing.It is possible that economically prosperous and militarily confident China and India might come to terms with each other eventually and their mutual containment policies start yielding diminishing returns. 7 Reference1. ID=74709509500800100208106700808901509605400700808108802002512200502300 911309506912200603806302201404904000500500500700406709702902301506901800 302509500000900109512509501909307700711612509200702500107702507109706900 7107008104096099086004001104121120066031&EXT=pdf3. india-relations/4. Google5. China_Relations_From_A_Geopolitical_Perspective         8