ISAS Insights

Bilateral economic ties between China and India have improved rapidly. Both countries are attaching considerable significance to their economic relationship. This is evident from the decision to hold an annual strategic economic dialogue (SED). The first SED was held in Beijing on 26 September 2011. It focused on several areas where the two countries can meaningfully collaborate such as infrastructure development, energy efficiency and water conservation. However, it avoided discussion on barriers to market access that exporters and service providers from the two countries continue to face in each others' domestic markets. The paper argues that future SEDs should discuss possible ways for removing these barriers. Till these restrictions persist, growth in bilateral economic engagement will continue to face restrictions.