India and China - future prospects in trade

In recent years, businesses between China and India increased in large quantity. China was accepted 143rd member of World Trade Organization (WTO) on 11 December 2001. Accession to the WTO will provide China's exports with steady access to world markets, without dependence on yearly renewals of the most favoured nation treatment by USA and other major trading partners. This will provide greater stability to China's economy in general and exports in particular. This paper studies the trends and changes in the composition of exports and imports of Indian trade after China's accession into WTO. This paper also attempts to evaluate the implications of China's accession to the WTO in terms of its impact on the country's exports, imports and foreign investment inflows, and also discusses the likely effect of these developments on the future prospects on Indian trade.