Trade binds China and India

China and India both are developing countries, both have huge populations (largest two in the world) and both are fast growing economies. China has enjoyed an average annual growth of about 10 percent during the past three decades, while India's growth rate was 7 percent in the decade and half preceding the global financial crisis. The two countries' continuous economic growth, therefore, will not only benefit their 2.5 billion people, but also play a significant role in economic development across the globe.

The past decade was especially productive for bilateral ties thanks to the frequent exchange of leaders' visits and more people-to-people interactions. India has been a strategic trading partner of China for the past nine years, and China is now India's largest trading partner.

Three features stand out in the two countries' trade relations. The first is the deepening of Sino-Indian trade cooperation. According to China's customs data, Sino-Indian trade rose from $7.6 billion in 2003 to $66.47 billion in 2012, an average annual increase of 30 percent. And there is still plenty of room for deeper cooperation between the two sides.