Future of India-China relations: A key role to the global economy

Abstract

This study is aimed at exploring the influence of India-China relationship on the global economy and its extent of control on global economy dynamics. Due to the mass population, the two countries have the potential to increase and influence the global economy. In this study, an extensive literature review, export and import and competitiveness index secondary data were used to explore the current position of India and China in the global economy. A SWOT analysis was used to analyze the future relation. The findings show that the growth of business between India and China is positive but there is still an imbalance of trade between the two countries. It also indicates that Indias economy is getting despondency and more competitive, that directly effect on global economy. According to the Global Competitiveness Index (GCI) score report, China has a better rank compared to India, so the strong relationship can help India improve its GCI Index. Finally, the economy relations can be improved by introducing better public services and good policymaking.