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 enhancing and strengthening economic cooperation between the two countries. Besides the India-China Joint Economic Group on Economic Relations and Trade, Science and Technology (JEG) and the India-China Strategic and Economic Dialogue (SED), a Financial Dialogue has also been instituted since 2006.
India-China Financial Dialogue: In accordance with the MoU signed during Chinese Premier Wen Jiabao’s visit to India in April 2005, the two sides have since successfully held eight Financial Dialogues in April 2006, December 2007, January 2009, September 2010,November 2011, September 2013, December 2014 and August 2016 respectively. The Eight India-China Financial Dialogue was held on August 19th in Beijing.During this Dialogue, the two sides 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. A Joint Statement was signed at the end of the Dialogue. The Ninth India-China Financial Dialogue is scheduled to be held in India.
Banking Links: Many Indian banks have established their presence in mainland China in the last few years. State Bank of India (Shanghai and Tianjin), Canara Bank (Shanghai), Bank of Baroda(Guangzhou), Bank of India (Shenzhen), Axis Bank(Shanghai) and ICICI (Shanghai)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: Punjab National Bank, (Shanghai),Union Bank of India (Shanghai and Beijing Bank of India(Beijing), Union Bank of India (Beijing) and 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.
In early 2011,Industrial and Commercial Bank of 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.