Trade and Development Review, Vol 13, No 2 (2020)

Post-Covid World Economy and India-China Bilateral Trade

Biswajit Nag, Ashima Puniani

Abstract


In the presence of covod-19 pandemic, US-China trade war and India’s exit from RCEP, the current study attempts to analyze the trend of export and import between India and China, the reasons behind export growth, change in competitiveness, quality perception, etc. Further, it compares global value chain (GVC)participation of India and China especially backward and forward linkages. The paper findsthat India lacks diversification and good quality. Its export growth has been mainly due to pure competitiveness. On the other hand, China has gained mainly through product diversification and economies of scale. In many products, China has started experiencing a decrease in competitiveness in Indian market. Both China and India had a steep rise in GVC participation but in terms of GVC position, China has moved towards forward participation in GVC and India towards backward participation. The paper concludes that for India, compete and cooperate simultaneously with China perhaps could be the best strategy.

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