The recent sixth installment of the India-China Strategic Economic Dialogue (SED) took place in New Delhi. The SED is an established platform where representatives from various economic sectors engage in deliberations aimed at facilitating ease of doing business, promoting bilateral trade and investment flows. This forum has played a significant role in shaping economic strategies and partnerships between the two nations.
The SED and its Scope
Conversations during the SED covered areas such as infrastructure, energy, resource conservation, and policy coordination. The representatives also shared views on the regulatory procedures concerned with the ease of doing business. One of the highlights was the discussion on the development and impact of artificial intelligence, high-tech manufacturing, and next-generation mobile communications within both countries.
Background of the SED
The origin of the SED can be traced back to the agreement between India’s erstwhile Planning Commission and China’s National Development and Reform Commission (NDRC). This agreement transpired during Chinese Prime Minister Wen Jiabao’s visit to India in December 2010. Since its inception, the SED has served as an integral mechanism that has facilitated bilateral trade and investment flows and boosted economic cooperation.
| Year | Bilateral Trade ($billion) | Trade Deficit ($billion) |
|---|---|---|
| 2018-19 | 87 | 50 |
| 2017-18 | 84.4 | 48.7 |
| 2016-17 | 70.4 | 51.1 |
Importance of the SED
While looking at the economic interaction between India and China, one can understand the importance of the SED. For the fiscal year 2018-19, the bilateral trade between India and China totaled $87 billion. However, a trade deficit of $50 billion existed in favour of China. As such, meetings like the SED play a crucial role in regulating, balancing and enhancing the trade relationships between these two significant global economies. Therefore, the SED is not just a forum for deliberation, but a strategic tool for economic growth and cooperation.
