India and China: Prospects and Challenges

Evolution of India-China Relations:-

The past 60 years of India-China relations have obviously signaled that both the countries have been seeking mutually acceptable solutions to the main contention relating to boundary issue’s. It is also generally believed that both countries never allowed the differences to come on their way of bilateral cooperation and engagement.The major challenge confronting India-China relations has been to build mutual trust and confidence.



The most important field for cooperation between China and India will be the trade and economic. In 1984, the two sides signed a Most Favored Nation Agreement (MFN) and trade levels since have increased many times over with the figure touching $74 billion in 2011 from $2.92 billion in 2000. Both countries have set an ambitious trade target of $100 billion in trade by 2015. China questions the length of the border and also disputes the 1914 McMahon Line that demarcates India and China border. China also claims the entire north-eastern Indian state of Arunachal Pradesh, which shares border with China. India has also been up in arms against China’s policy of issuing stapled visas for citizens from the Indian state of Jammu and Kashmir. The sharing of river waters is likely to emerge as another problem area for India-China relations in the absence of a treaty between the two countries.The major challenge confronting India-China relations has been to build mutual trust and confidence.

An Era of Creating New Atmosphere and Trust in Bilateral Relations: 1988-1998:-

The period during 1988 – 1998 has been characterized as a period of creating new atmosphere and trust in India – China bilateral relations. The ice in the relationship was broken when the then Prime Minister of India, Rajiv Gandhi visited China in December 1988. It was historic because the Prime Minister of India was visiting China after more than three decades.India and China agreed to cooperate for mutual development on a number of areas.

Read More


India & China in a multipolar world.