China's soft stand on India:
After 18 months without an Ambassador in India, senior diplomat Xu Feihong has assumed the role of the 17th Chinese Ambassador to India. Mr. Xu's main focus is to reestablish exchanges and cooperation in various areas, promoting a stable and healthy India-China relationship. He stressed that both nations are cooperation partners, not rivals, and their collaboration is a key principle for bilateral progress. Inter-connected world China can not always keep an aggressive stance with India or even with the USA. His article was published in the Hindu newspaper, talking about five mutuals. PressReader.com - Digital Newspaper & Magazine Subscriptions
Why this new love for India?
India and China are notable players in the global market due to their large populations and interconnectedness in today's world. India, with over 1.42 billion people, possesses one of the largest consumer bases globally. India's distinction lies not only in its immense population but also in the demographic makeup of its people. The country is known for its predominantly young population, with a considerable percentage under 30 years old. This youth demographic not only represents a substantial consumer market but also indicates a potential workforce capable of fueling economic progress and innovation.
India's economy has been steadily growing in recent years, making it a key player in the global economy. The country has undergone significant economic reforms that have opened up new opportunities for businesses and investors. As a result, India has become a hub for various industries, including information technology, pharmaceuticals, agriculture, and manufacturing. The combination of a large consumer base, a young and dynamic population, and a growing economy makes India an attractive destination for businesses looking to expand their operations.
Furthermore, India's Inter-connectedness with the rest of the world through trade, technology, and cultural exchanges has further solidified its position as a major player in the global arena. The country's strategic location in South Asia also makes it a key player in regional geopolitics and trade dynamics. As India continues to evolve and embrace new technologies and innovations, its influence on the global stage is only expected to grow.
India's status as one of the biggest marketplaces in the world is not just a result of its massive population but also its dynamic economy, young demographic profile, and increasing global interconnectedness. As the country continues on its path of growth and development, it is poised to play an even more significant role in shaping the future of the global economy.
We can broadly see the world in four major blocks (at least concerning India). And I tried to find the important demographic, and economic factors which one needs to understand
Metric | China | India | USA | EU (varies by country As a region) |
Population (2023) | 1,42,57,00,000 | 1,42,86,00,000 | 340,000,000 | 446,000,000 |
Median Age | 39 years | 28 years | 38 years | 45 years |
GDP (Current, 2023) (Approx.) | $17.79 trillion | $3.55 trillion | $27.36 trillion | $18.35 trillion |
Annual Growth Rate of Economy in 2023 | 5.20% | 7.60% | 2.50% | 0.50% |
Per Capita GDP (Current, 2023) (approx.) | $12,614.1 | $2,484.8 | $81,695.2 | $40,823.9 |
Internet Users(%age of Population) | 80% | 56% | 95% | 91% |
Internet Users(By Numbers) | 1,14,05,60,000 | 80,00,16,000 | 32,30,00,000 | 40,58,60,000 |
English Speaking Pop. | Growing proficiency | Large English speaking | The primary language is English | Varies by country |
Despite all the geopolitics and contradicting political compulsions, economic considerations play a pivotal role in shaping the outcomes of bilateral and multilateral negotiations. The intertwining of economic interests often serves as the primary motivation for countries to engage in diplomatic talks and seek mutually beneficial agreements. In today's interconnected global economy, nations are increasingly reliant on each other for trade, investment, and economic cooperation, making economic factors a significant driver of decision-making in international relations.
Economic considerations encompass a wide range of issues, including market access, tariffs, investment regulations, intellectual property rights, and currency exchange rates. These factors can have a profound impact on the competitiveness of businesses, the well-being of citizens, and the overall economic growth of countries involved in negotiations. As such, policymakers often prioritize economic concerns when formulating their negotiation strategies and seeking to secure favourable terms for their respective economies.
Moreover, the economic dimension of negotiations extends beyond mere trade agreements to encompass broader issues such as development assistance, infrastructure investment, and financial cooperation. Economic incentives can be used as leverage to influence the behaviour of other countries and advance strategic objectives, creating a complex interplay between economic interests and geopolitical considerations.
China's dominance in world trade:
During the fiscal year 2023-24, China surpassed the United States as India's top trading partner. The bilateral trade between India and China amounted to $118.4 billion. India's exports to China grew by 8.7 per cent, reaching $16.67 billion, and imports from China saw a 3.24 per cent increase, totalling $101.7 billion.
The total value of U.S. trade in goods with China reached around $575 billion in 2023, comprising an export value of $147.8 billion and an import value of $427.2 billion. This led to a trade deficit of $279.4 billion for the United States. Despite facing multiple obstacles and tensions, the economic connections between the U.S. China continue to be substantial, highlighting their interconnected commercial partnership
In conclusion, while geopolitics and political considerations undoubtedly shape the landscape of international negotiations, it is the economic factors that often serve as the driving force behind the pursuit of diplomatic agreements and the resolution of conflicts. Understanding the intricate relationship between economics and diplomacy is essential for navigating the complexities of modern international relations and fostering cooperation in an increasingly interconnected world.
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