India and China in the Emerging Asian Economic Architecture
Over the last decade, India and China have emerged as the two most dynamic economies in the world. This paper undertakes an analysis of the trends of growth and the structure of the comparative advantage that helps understand the pattern of regional economic integration of these economies. Against this background, the paper proceeds to discuss the emerging imperatives in the aftermath of the global financial crisis for strengthening regional economic bonds. In the light of the emerging regional scenario with India’s increasing attraction as an alternative market for ASEAN exports and ASEAN’s existing production oriented linkages with China alongside the strengthening of India–China bilateral trade, the paper discusses how the possibility of a gainful regional configuration that includes India and China as members is gaining ground. The 16-member Regional Comprehensive Economic Partnership (RCEP) that is inclusive of India, China and ASEAN is emerging as a feasible regional trading arrangement in Asia.
KeywordsIndia China ASEAN Comparative advantage Economic integration Global financial crisis Global imbalances
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