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What we can learn from China

For the past two decades, China and India, the ancient two civilisations, have been trying to add a new contemporary economic dimension to their relationship. Indian imports from China have been over $60 billion per year for the last three years, while the exports have been around $10 billion per year. The trade deficit of last year was around $50 billion, many times higher than what it was earlier — $142 million in 1996-97 and $9 billion in 2006-07. Widening trade deficit is a challenge that needs to be addressed as 44.39% of India’s total global trade deficit in 2015-16 was with China. Many initiatives in India, like ‘Make in India’, ‘Digital India’, new bankruptcy law, formation of the Monetary Policy Committee by the Reserve Bank of India to fix interest rates and now the rollout of the Good and Service Tax (GST) provide good opportunities and environment for China to invest in India. Click here for more details