INDIA-CHINA ECONOMIC RELATIONS
India-China economic relations constitute an important element of the strategic and cooperative partnership between the two countries. Several institutional mechanisms have been established for enhancingand strengthening economic cooperation between the two countries. Besides the India-China Joint Economic Group on Economic Relations and Trade, Science andTechnology (JEG) and the India-China Strategic and Economic Dialogue (SED), a Financial Dialogue has also been taking place between the two countries since 2006.
India-China Financial Dialogue: In accordance with the MoU on the Launchof the Financial Dialogue between India and China, signed during Chinese Premier Wen Jiabao’s visit to India in April 2005, the two sides have since successfully held six Financial Dialogues in April 2006, December 2007, January2009, September 2010, November 2011 and September 2013 respectively. The Sixth India-China Financial Dialogue was held on September 26, 2013 in Beijing. A Joint Statement was signed and released at the end of the Dialogue. During this Dialogue, the twosides held in-depth discussions on new challenges facing the global economy,macro-economic situations and policies in India and China, progress on structural reforms in both countries, cooperation under multilateral frameworks as well as bilateral financial cooperation. The Seventh India-China Financial Dialogue is scheduled to beheld in New Delhi in 2014.
Banking Links: Many Indian banks have established their presence in mainland China in the last few years. Four Indian banks, namely, State Bank of India (Shanghai and Tianjin), Canara Bank (Shanghai), Bank of Baroda (Guangzhou) and Bank of India (Shenzhen) have branch offices in China. At present, the State Bank of India is the only Indian bank to have authorization to conduct local currency (RMB) business at its branch in Shanghai. Besides, the following representative offices of Indian banks are also operating in mainland China:
(i) Axis Bank, Shanghai
(ii) Punjab National Bank, Shanghai
(iii) Union Bank of India, Shanghai
(iv) ICICI Bank, Shanghai
(v) Bank of India, Beijing
(vi) Union Bank of India, Beijing
(vii) Allahabad Bank, Shenzhen
(viii) Indian Overseas Bank, Guangzhou
More Indian banks are planning to upgrade their Representative Offices in China to branch offices and existing branch offices are applying for RMB license. Axis Bank and ICICI Bank (Shanghai) have also obtained permission for branch office.
In early 2011, Industrial and Commercial Bankof China (ICBC) secured a license to start banking operations in India. ICBC inaugurated their Mumbai branch on September 15, 2011. This marked the opening of the first branch of a mainland Chinese bank in India.
Various government institutions and agencies from the two countries have also been interacting with each other for furthering cooperation in the areas such as taxation, auditing, human resource development and employment, health, urban and rural development and tourism.There is a close exchange and interaction between the economic think tanks and scholars as well.