Between the Two Worlds

India and China, despite their shared historical dominance in the global economy of yore, have taken divergent paths. While China banks on self-reliance, India remains dependent on external technology and imports, particularly from China, leading to economic vulnerabilities

- DIPANKAR DEY

India and China, two of the world's oldest civilizations, stand at a crossroads of history, with their shared rich cultural heritage and complex relationship shaping the modern world. On October 30, 2024, H.E. Mr. Xu Fei Hong, China's Ambassador to India, published an article, titled "The elephant, dragon tango" in The Indian Express, elaborating on China's economy. In his piece, the Chinese ambassador reiterated that development was the biggest shared goal of China and India. China has put forward the goal to build itself into a great modern socialist country in all respects through the middle of this century. India also has the vision of 'Viksit Bharat 2047'. The contribution to each other's success would create huge development dividends and strategic opportunities, he wrote. However, amid the rising concerns over potential export disruptions due to US reciprocal tariffs, set to take effect on April 2, 2025, the Ministry of Commerce and Industry has asked Indian businesses to identify areas where imports from China and other countries can be substituted with American goods.

On April 1, 1950, India became the first non-socialist bloc country to establish diplomatic relations with the People's Republic of China (PRC), which was founded on October 1, 1949—two years after India attained independence in August 1947. This journey is remarkable because of periods of both cooperation and conflict, including the 1962 Sino-Indian War, and efforts towards normalization and increased trade.