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By Cheng Guoqiang, DRC

2016-11-21

China and India are the most populous developing countries as well as emerging economies with the largest markets and growth potential and the highest growth rate.

First， the economic cooperation between China and India has enormous potential and a good foundation. 1. The two countries share the same development concept and complement each other’s industries. China has been India’s largest trade partner for seven consecutive years. 2. The two countries have a strong desire for substantial economic cooperation. 3. The companies of both countries have the demand to make investments in each other’s market.

Second, the Chinese government needs to promote substantial economic cooperation between the two countries. The establishment of a new cooperation mechanism between China and India is significant for enhancing political trust, deepening economic and trade investment and cooperation, and promoting regional economic integration. 1. Through the expansion of trade volume and the establishment of an integrated market, the comparative advantages and cooperation potential of the two countries could be brought into full play to achieve win-win development result. 2. The Chinese government needs to construct high-level Regional Comprehensive Economic Partnership （RCEP）, promote the upgrading of industrial structures in member countries and add a new impetus to regional growth. 3. Mutual cooperation is conducive to maintaining world trade and investment order and promoting world economic growth. Being the global economic growth engines, China and India contribute more than 40% to world economic growth.

Third, some policy options are made as follows. 1. Dialogue and consultation mechanisms between government departments of the two countries should be constructed. 2. Both countries need to make joint efforts to promote the RCEP negotiations, 3. It is necessary for the two think tanks of DRC and NITI to play the role for communication exchanges.

Key words: the Development Research Center of the State Council (DRC), the National Institution for Transforming India (NITI)