A Comparative Study of International Trade and FDI: India China Relations

Alok  Baran; Aakanksha  Kumari; Monu  Kumar

doi:10.69968/ijisem.2025v4si11-8

Authors

Alok Baran Department of Commerce, St. Xavier’s College of Management and Technology.
Aakanksha Kumari Department of Commerce, St. Xavier’s College of Management and Technology.
Monu Kumar Department of Commerce, St. Xavier’s College of Management and Technology.

DOI:

https://doi.org/10.69968/ijisem.2025v4si11-8

Keywords:

International Trade, Foreign Direct Investment (FDI), India, China, Economic Growth, Trade Policies

Abstract

The economic development of the nation depends upon the international trade and Foreign Direct Investment (FDI). These two factors are very essential in enhancing the economy of the nations on global level and also helps in generating growth. Based on these important factors, this review paper aimed to study the relationship among India and China in context of their international trade and FDI. The paper explored the trade policies implemented by both the countries and how these trade policies have evolved over the years. Also, how these countries have implemented new strategies to attract the FDI and its impact over their economic growth and development. This paper highlights the key factors driving international trade and FDI in India and China, such as their economic reforms, market size, infrastructure, and government policies.

The paper also attempted to understand the challenges faced by India and China in their journey of strengthening trade and attracting foreign investments, including regulatory hurdles, geopolitical tensions, and competition from other emerging markets. Both the countries have reached new levels and are recognized for their development in foreign market. The paper concludes by emphasizing the importance of international trade and FDI in shaping the future of the global economy, with a specific focus on the dynamic relationship between India and China. This study provides a clear and simple understanding of the factors influencing trade and investment between two of the largest economies in Asia.

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