The Pattern of Trade in India and China Research Paper 2022

Running head: THE PATTERN OF TRADE IN INDIA AND CHINA
THE PATTERN OF TRADE IN INDIA AND CHINA
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THE PATTERN OF TRADE IN INDIA AND CHINA1
Executive Summary
This paper has discussed about the trade patterns of India and China, the changes that took
place in the last thirty years and the key drivers of these changes. Both India and China have
been new comers in the process of expansion of International trade and they both have
remarkably progressed in this area. There were significant rise in the trade volume as well as
the composition of the exports that undergone many notable changes. However, imports of
India have expanded faster than its exports. Its international trade is highly geared towards
the south-south exchange. On the other hand, China too have undergone massive
improvement and progress. The volumes of trade in China have increased significantly in the
past thirty years at an average of 17.3% overall. It has successfully made a significant place
for itself in the global market since its involvement in WTO and is considered to be the
biggest economy after USA and Japan.

THE PATTERN OF TRADE IN INDIA AND CHINA2
Table of Contents
1. Introduction.........................................................................................................................2
2. Discussion...........................................................................................................................3
2.1. Background..................................................................................................................3
2.2. The Pattern of Trade in India and China over the last 30 years..................................3
2.3. Factors responsible for the changing trade pattern in the countries............................7
2.4. Findings.......................................................................................................................8
3. Conclusion..........................................................................................................................9
4. References.........................................................................................................................10

THE PATTERN OF TRADE IN INDIA AND CHINA3
1. Introduction
The world economy has rapidly increased and developed after the World War II. There
has been a notable transformation in the Pattern of Trade and this depicts the current changes
in the global economy structure (Rodrik 2014). They are comprised of the growth and rise of
the regional trading blocs, the increased participation of the communist nations,
deindustrialisation of the advanced economies and the growth of the new industrialised
countries such as India and China. All these changes have remarkably transformed the global
economy. As per the recent data, about one-fourth of the entire global production is exported.
Gaining a good understanding of this process of transformation is significant as of the reason
that trade has generated gains and profits, but at the same time, has also had notable
distributional outcomes. Although trade is subjected to short-term fluctuations because of the
economic cycle, the value and significance of trade has continuously grown. This further
reflects high level of importance of globalisation and trade. According to Ntara (2015),
growth and emergence of the regional trading blocs where the members of the same freely
trade with one another, but erect the challenges for trading with the non-members, has had a
notable influence on the pattern of the world trade.
This report shall elaborate on discussing about two countries on the basis of their pattern
of trade. The chosen countries for this purpose are India and China. The report shall highlight
and describe their pattern of trade in the last 30 years by means of using relevant data and
information. Furthermore, it shall also identify and analyse the different factors for the
changing trade pattern in both the countries. Finally, a section of findings shall be presented,
shedding light on the predication of the trade theories.