Providing Political Impetus to Sino-Indian Economic Cooperation

China and India relationship has emerged as an enigma for the international community who are unable to map the Sino-Indian bilateral engagement. From rich civilizational contact in the ancient time to modern uncertain relationship creates an enigma around India-China relationship. The beginning of the 21st century has opened up new possibilities that can redefine the international system based primarily on India-China relationship. The allusions are clear that the present century is going to be an Asian century in which India and China would play the defining role. At a different level,we see a renewed positive courtship between India and China that can be the beginning of the emergence of Sino-Indian cooperative international order. The current financial crisis that crippled most of the Western world could do little damage to India and China. This in a way provides an opportunity to both India and China to intensify their economic cooperation to provide improved living to their billion plus populations. But unfortunately the present India-China economic relationship seems to be,at best,reluctant engagement. Economists may have technical explanations to such reluctance from both sides but from international relations perspective this can be explained by relative gains taking precedence over absolute gains in their calculations of economic engagement. In this background the proposed paper seeks to delve into the factors that force both India and China to adopt a cautious policy vis-à-vis each other even in matters as benign as economy. The paper goes on to suggest graduated reciprocation as a method to intensify India-China economic cooperation.

China and India relationship has emerged as an enigma for the international community who are unable to map the Sino - Indian bilateral engagement. From rich civilizational contact in the ancient time to modern uncertain relationship creates an enigma around India - China relationship. The beginning of the 21 st century has opened up new possibilities that can redefine the international system based primarily on India-China relationship. The allusions are clear that the present century is going to be an Asian century in which India and China would play the defining role. At a different level, we see a renewed positive courtship between India and China that can be the beginning of the emergence of Sino - Indian cooperative inter- national order. The current financial crisis that crippled most of the Western world could do litde damage to India and China. This in a way provides an opportunity to both India and China to intensify their economic cooperation to provide improved living to their billion plus populations. But unfortunately the present India - China economic relationship seems to be, at best, reluctant engagement. Economists may have technical explanations to such reluctance from both sides but from international relations perspective this can be explained by relative gains taking precedence over absolute gains in their calculations of economic engagement. In this background the proposed paper seeks to delve into the factors that force both India and China to adopt a cautious policy vis - a - vis each other even in matters as benign as economy. The paper goes on to suggest graduated reciprocation as a method to intensify India - China economic cooperation.