Dependence of China on India to boost its economy

China and India leaders shaking hands on a deal agreement

Dependence of China on India: To a very large extent China’s economy depends on India. The bilateral trade between the two serves as a pacemaker for both the countries. It is not just China; India’s economy is also well dependent on China. Any kind of disharmony between the two nations may lead to disruption in the economic grounds of both the nation.

China and India are the world’s fastest growing economies. Both the nations  in terms of economy surpass the developed nation,  in terms of world economic ranking as per GDP count, China ranks 2nd whereas India’s ranks 5th. Even after such an economic score, per capita income generated is low for both the countries.

Dependence of China on India: According to a report generated by IMF, China ranked 73rd by GDP (PPP) per capita in 2019 whereas India ranks 126th. This completely indicates for the unequal asset distribution amongst the countrymen. Because nation with high GDP ranking, scoring low in terms of per capita income is something to ponder upon.

After a brief economic discussion of both the nations, let us get back to the heading, and find the answer of following questions:

i) How is China’s economy dependent on India?

ii) Can bilateral trade resolve conflicts between two nations?

China’s dependence on India to hold its economic grounds strong

Dependence of China on India: The bilateral trade between the two nations is the only reason or say the only way to weaken or demolish the ongoing strain between the two.

The statistical data says everything about the economic dependence of one on another.

Just to aware you, this year bilateral trade between the two nations has declined by 3.59%. The total trade in the first five months of this year has been of $36.87 billion but keeping an optimistic approach, the expected value is supposed to reach $100 billion by the end of this year. Previous year  i.e. 2018 the bilateral trade between the two nations reached to a historic high of $95.54 billion.

Imports definitely help in growth of a nation, but economy of a nation is decided by its exports to import ratio because exports generate taxes and these further generate revenue to the nation. If imports are greater than exports then definitely economic roots of the nation needs more nutrition to strengthen. This implies more the export more strong is the economy.

The current data will describe you the economic dependence of China on India.


1. Electronic equipment $27.5 billion
2. Machinery $12.8 billion
3. Organic chemicals $6.6 billion
4. Plastics $2.1 billion
5. Iron and Steel $1.6 billion
6. Mechanical and Technical equipment $1.6 billion
7. Iron and steel items $1.4 billion
8. Vehicles $1.3 billion
9. Other chemical products $1.2 billion
10. Fertilizers $1.1 billion

Dependence of China on India: Besides the data mentioned above, being this as a festive season, and Chinese products being attractive and cheap are always on the top of buyers list. The Chinese decorative item and crackers are exported on a much larger scale to India generating good revenue to their nation. Previous year marked with, 25% import of Chinese crackers to India. This year the share has increased to 40%, generating worth of Rs. 1500 crore.

Entering into the digital world, applications and games developed by China are one of the social sources to generate great revenue. India being a populous nation has a major share in helping of generation of this revenue.

Such a large export from China to India helps in boosting the economy of China, any disruption in this export rate or revenue generated through these exports will severely affect the national economy of China and even might shake the roots of nation’s economy.

Can bilateral trade resolve conflicts between two nations?

Dependence of China on India: Requirement after a certain while generates needs which further turns to necessity which later on develops a fear of losing it and when there is a fear of losing it, people become more quiet and obedient in actions with the person or the authority that satisfies his or her necessities. This exactly is the way to resolve underlying conflicts which initially will be an imposed way to bring peace but will give time to think and  synchronize with this harmony even when it is not imposed.

To sum up I would just say that whatever be the conflict or strain prevailing, the bilateral trade is helping both the nations to grow and to be stronger economies. As the time will pass by I wish that all the underlying strains do get resolved because that would surely bring peace to both the nations, a peaceful and happy environment generally brings more prosperity.