Watch out global economies — the largely undeveloped Asian region is set to roar as India and China are entering into a new era of political and economic cooperation.
While a longstanding border dispute has historically marred ties between the two neighbors, the visionary foreign policy of both countries has directed them to embrace the future and steam ahead by improving bilateral relations. Despite what some critics may say, the recent tour of Indian Prime Minister Modi to China is being hailed as a remarkable success that would usher a new era of economic and social uplift in Asia.
Modi’s discussions with Chinese President Xi Jinping remained special as political tensions remained in the background and both sides agreed to explore a “fair, reasonable and mutually acceptable resolution” to the border issue. Modi was loud and clear in his intentions — “let us work together in mutual interests. Now India is ready for business.”
The focus of his trip was on promoting trade and economic partnership as deals worth about $22 billion were inked in areas of renewable energy, infrastructure, education, and financial sector. The newly found trust and respect for each other is certainly good news for the middle-class and corporate groups of both countries, home to about one-third of the global population.
It seems that the two neighbors, typically engaged in a complex relationship, have now adopted a long term and strategic view of their ties to tap the massive economic potential offered by their populous region.
A vibrant economy, with investments in human capital, infrastructure and health, remain key for progress of both India and China in today’s modern times. Political and economic stability will allow both countries to extend their regional influence into the global sphere and gain even greater stature in the international community.
While Modi’s visit symbolizes India’s “look East” policy, it also signals that the Chinese leadership is keen to forget the past and forge new partnerships that will further cement its position as a global economic hub.
Recent foreign policy maneuvers by India and China indicate that politically strained relations can be softened by wider economic interests. As India moves closer to Asian countries, China is also showing long-term commitment to its traditional allies. In April this year, China promised an investment of $46 billion in its oldest and closest South Asian friend Pakistan to build an economic corridor that will directly connect the country with Indian Ocean. This wide network of roads and pipelines will allow China to extend its influence in Central and South Asia.
The Modi tour may provide a fresh start to relations between India and China as both sides enter a new era of political and economic engagement. As the world’s largest economy, China is a clear global power that enjoys much more cordial relations with regional countries than India. However, it also realizes that the significantly large Indian economy cannot be ignored at any cost. Warmer Sino-Indian relations will be a game changer for the global economy and, in words of the two leaders, could lead to “realization of the Asian century.”
