Sino-Indian economic cooperation must be grounded in reality
Monika Chansoria says there's no ignoring the geostrategic considerations and contest for markets
Prior to Xi Jinping's recently concluded state visit to India, soaring expectations obscured some of the realities with regard to the signing of important trade, investment and commerce-related agreements.
Given that China is the No1 trading partner for some 120 economies around the world, it is obvious that trade, investment and infrastructure have become buzzwords on the road to deepening Sino-Indian ties. However, also being debated vociferously is whether trade and investment will become the driving force for future relations, given the pressing strategic realities, including the interminably unresolved border dispute.
Nation states are more likely to favour a cooperative framework through economic ties and multilateral institutions. In this way, Xi has reason to seek better ties with India, given China's need for infrastructure markets for its manufacturers.
Reports that Beijing plans to invest around US$500 billion overseas in the next five years led to improbable reports of big-ticket investments coming India's way, probably exceeding US$100 billion.
Even the Chinese consul general in Mumbai dropped hints of such a figure, and these numbers drew direct comparisons with Japanese Prime Minister Shinzo Abe's earlier announcement that Tokyo would double private and public investment in India to US$34 billion over the next five years.
As a result, this turned the entire debate into a three-way, China-India-Japan triangle and an ongoing contest in Asia.