India-China economic relation constitutes an important element of the strategic and cooperative partnership between the two countries. Several institutional mechanisms have been established for enhancing and strengthening economic cooperation between the two countries. The resultant growth in China and India's global diplomatic and economic influence has also enlarged the importance of their bilateral relationship. In the era of globalization, economic ties constitute the basis of overall relations between countries. China and India are two of the largest economies and both have established their comprehensive industry systems. But at the same time, the economic strengths of two countries are very much complementary to each other. India is strong in knowledge-based industries and pharmaceuticals whereas China is strong in manufacturing and infrastructure. Various government institutions and agencies from the two countries have also been interacting with each other for furthering cooperation in the areas such as taxation, human resource development and employment, health, urban development and tourism. There is a close exchange and interaction between the economic think tanks and scholars as well. Relations between India and China will have a bearing on world economic affairs as the two countries are set to be the largest economies of the world.
R. Keshab Chandra and Dr. Sushanta Kumar Mahapatra, “India China: The Anatomy of an Economic Relationship”, The Journal of World Economic Review, vol. Volume 8 No. 2, no. July-December, 2013.