Sino-Indian trade has been historically important for both sides of the border but modern day political bickering threatens a bilateral relationship that is expected to reap a $100 billion benefit for both sides of the border in just a few years.  As Alec van Gelder and Amitendu Palit argue in the Financial Express, it is crucial that both governments put aside their political differences and allow the world’s two most populous economies to continue benefiting from flourishing trade. To begin with, this involves shunning the vested interests that seek short-term protection and the expense of a potentially lucrative long-term partnership that could be one of the 21st century’s most important:

“China has quietly emerged as India’s most important trade partner. Sino-Indian trade in goods has grown from $2.3 billion to $40.6 billion a year—an annual increase of 50%.”

However, despite recognition in Delhi and Beijing that this commerce is beneficial for both countries, there are worrying signs of growing protectionism that could derail it.  Both India and China are guilty of imposing trade restricting cross-border trade, which could result in a pointless and harmful series of tit for tat reprisals.  Geopolitical and security concerns are also being exaggerated by politicians for political gain- at the expense of worsening trade relations.

The bottom line is that both countries have much to gain by pursuing trade friendly policies and a great deal to lose by denying their people and businesses access to each other’s markets. China and India are rightly proud of their history of enabling trade. Millions of people have been able to emerge from abject poverty as a result. As the global demand for goods and services picks back up it is crucial that neither government allows this to be jeopardised.

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