China’s Economic Rebalancing: Impact on India

Tarujyoti Buragohain


This paper examines the extent of comparative advantage of India in the world market in the context of China’s recent economic rebalancing. China’s economy is more than five times that of India’s and its manufacturing sector is ten times that of India. China contributes 13 per cent in 2015 to the world export; occupies rank-1; whereas India’s share is 1.30 per cent and occupies rank-21 in the world exports. The share of exports of India to the world market remained stagnant at 1.7 per cent in 2013 and 2015 and started declining thereafter. The India’s export to China of all commodities since 2003-04 to 2016-17, shows an inverse U trend. There are some products, such as food items, agricultural raw materials, ores and metals and fuels for which the RCA index is much higher for India than that of China, whereas the RCA value is much higher for China in case of manufactured goods. 


China’s Economic, Indian Economy

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