What's at stake for Indo-China ties?
The meet between Manmohan Singh and Li Keqiang will be the 15th such meeting between the prime ministers of India and China since UPA 1 came to power in 2004. Jayanth Jacob reports.Updated: May 07, 2013 00:09 IST
The meet between Manmohan Singh and Li Keqiang will be the 15th such meeting between the prime ministers of India and China since UPA 1 came to power in 2004.
In 2004, the bilateral trade was just $10 billion, and BRIC(S) -Brazil, Russia, India, China and South Africa - was just an idea in the works. There was less international cooperation between the two countries and China seemed less vulnerable to the boundary disputes with its south-east Asian partners. And East Asia summit was not what it is today, with Russia and the US on the board. Despite the accord of 1993, the boundary disputes continued.
But the stakes are high for both India and China to precipitate a crisis now.
However, Manmohan Singh has set a template by saying "there is enough space for India and China to grow together." Both "cooperation and competition" are equally important components of the ties as the two countries are trying to address their differences. Despite the differences, the business and trade ties grow stronger.
Bilateral trade is set to meet the target of $100 billion by 2015 as the trade figure touched $66 billion in 2012, a slight decline from $74 billion a year before.
India is also the largest market for project exports from China. At present, projects under execution are estimated at over $55 billion.