Weighty Asian nations strengthen all-round ties
Chinese President Hu Jintao shakes hands with Indian Prime Minister Manmohan Singh at a ceremonial reception in New Delhi, India on November 21, 2006. Amit Bhargava/Bloomberg News |
No matter the route taken, the two economic giants seem to have more and more to share.
"India-China relations today have an implication that goes beyond our bilateral ties to touch the region and beyond," said Nirupama Rao, Indian ambassador to China. "It is being said that in the 21st century, Asia will rediscover its rightful place. Asia has also been called the engine of the world's future growth."
"The two countries also have an important role to play in protecting the interests of developing countries in this increasingly globalized and rapidly integrating world. There is much we can share in the areas of health, education, sustainable development, poverty alleviation and environmental protection," the ambassador said.
Both countries are ensuring that large sections of their populations are leaving poverty behind for prosperity, she said. "All these are very significant achievements of which we can be justifiably proud."
"We are similar in that both our countries are big, populous, and have had to deal with the legacies of feudal history," said Rao. "We are also predominantly agricultural economies which missed the industrial revolution."
Nirupama Rao, Indian ambassador to China |
"We are different in the path chosen to build our nations, different in the way we decided to move our economies," she said. "The engines of our growth also operate along different lines.
"China follows an export-led growth anchored by its manufacturing sector and fuelled by massive foreign direct investment (FDI). Domestic consumption, limited FDI and the service sector contribute to the Indian economy."
For more than two decades, the annual economic growth in China has stayed at an average rate of 10 percent. India has seen a growth of 8 percent over the last four years and now aims to touch 9 percent this year.
"Never in history have two economies of the sizes of India and China demonstrated such high levels of near-simultaneous growth," Rao said. "It is not surprising that this phenomenon will attract comparisons, contrasts and comments."
Just more than a decade ago, India-China trade was just over $1 billion. In 2005 it was $18.7 billion, and the trade volume crossed $22 billion in the first eleven months of 2006.
"We are satisfied with the pace at which trade is growing between us," said Rao. "India, however, needs to diversify its exports to China significantly. Primary products and raw materials (iron ore, cotton) need to make way for more manufactured and value-added products."
Rao also noted that investments between the two countries fall below the potential indicated by their trade figures.
For a sustainable commercial and economic relationship, it is necessary that both sides look at the long term, she said.
"A diversified trade menu with easy access and well-informed investment decisions will boost prospects of mutually beneficial relations," she said.
"Increasing familiarization with each other's markets, greater exchange of business information and delegations will ensure positive outcomes for our bilateral commercial exchanges."
A historic year
The economic achievement of the two countries is just one of the many things that they can share and be proud of.
"Through celebration of the Friendship Year in 2006, China and India further intensified the degree of their mutually beneficial interaction, while at the same time recalling in a focused way the vibrancy of our age-old cultural relations and friendship," Rao said.
The high point of the year was the historic visit of President Hu Jintao to India, the first visit by a Chinese head of State to India in nearly a decade. During Hu's visit, the two countries signed a series of joint declarations, agreements, memorandums of understanding (MOUs) and protocols.
"The visit took our relations to a qualitatively new height, and it also set the compass and direction for our relations in the coming years," said Rao.
The focus of the Friendship Year was on enhancing people-to-people understanding through interactive activities.
"We need to facilitate such people-to-people exchanges in a multi-pronged way," Rao said.
"The airlines and tour operators need to devise more attractive packages, through better connectivity and language-speaking guides. The hotel and hospitality industry needs to cater for varying requirements of the travelers from our two countries."
She added that there is also a need for greater information flow in a more attractive way.
Some of these thoughts are being put into action, the ambassador said, noting that a series of events are being planned in 2007, the Year of Friendship Through Tourism, to tap the potential of tourism as a channel for people-to-people exchange and understanding.
"We are also planning to organize tourism road shows and travel marts to introduce India better to our Chinese friends," Rao said. "In addition, I think cultural events can help us discover our common heritage and facilitate mutual understanding."
(China Daily 01/26/2007 page17)
