Effects of Globalisation on India China Relations
GLOBALISATION AND INDIA-CHINA RELATIONS
There is a shift in the nature of the relations between India and China from a purely territotial perspective in the post-independence period to the economic perspective in the post globalization and liberalization period .This has resulted in both positive and negative ramifications because of both state and non-state factors.
POSITIVE IMPACTS:
TRADE:
The trade between the two countries has been increasing since the 1990s and has reached $67 billion in the current fiscal. Because of this , many people who are directly and indirectly involved in the trade have benefitted . Mainly the export of primary articles like agricultural products have benefitted the marginal farmers. Globalisation has helped offset the losses incurred during reduced domestic demand and also because of higher profit margins in the international market.
MULTI POLAR WORLD:
The importance of developing and industrialized countries after the globalization have increased their bargaining power in the international arena like climate change conferences, reforms in the U.N, reform of quota allocation in the IMF which were dominated by the developed world before.. In all these stages, India and China have acted together against the stance of developed countries and have helped other small countries and island nations collectively put forth their obligations.
SECURITY:
Free movement of labour , capital and enterprise across the world demands better universalized security infrastucture.Both India and SCO are against the three security related problems-terrorism, extremism and separatism. India wants to use the Regional Anti-terrorism Structure of the Beijing dominated-Shanghai Cooperation Organisation . Also China can make use of the India’s banking sector for their proposed SCO banking structure.
As both countries are interesred in Afghanistan’s mineral reserves, there is a need for both countries to chart out an emergency plan for dealing
There is a shift in the nature of the relations between India and China from a purely territotial perspective in the post-independence period to the economic perspective in the post globalization and liberalization period .This has resulted in both positive and negative ramifications because of both state and non-state factors.
POSITIVE IMPACTS:
TRADE:
The trade between the two countries has been increasing since the 1990s and has reached $67 billion in the current fiscal. Because of this , many people who are directly and indirectly involved in the trade have benefitted . Mainly the export of primary articles like agricultural products have benefitted the marginal farmers. Globalisation has helped offset the losses incurred during reduced domestic demand and also because of higher profit margins in the international market.
MULTI POLAR WORLD:
The importance of developing and industrialized countries after the globalization have increased their bargaining power in the international arena like climate change conferences, reforms in the U.N, reform of quota allocation in the IMF which were dominated by the developed world before.. In all these stages, India and China have acted together against the stance of developed countries and have helped other small countries and island nations collectively put forth their obligations.
SECURITY:
Free movement of labour , capital and enterprise across the world demands better universalized security infrastucture.Both India and SCO are against the three security related problems-terrorism, extremism and separatism. India wants to use the Regional Anti-terrorism Structure of the Beijing dominated-Shanghai Cooperation Organisation . Also China can make use of the India’s banking sector for their proposed SCO banking structure.
As both countries are interesred in Afghanistan’s mineral reserves, there is a need for both countries to chart out an emergency plan for dealing