India-China Merchandise Trade

India and China have emerged as robust global economic powers during the last two decades. Their economic interactions, particularly in the field of merchandise trade, have increased tremendously. China has already become the second largest trade partner of India while India's share in China's global trade is also increasing continuously. With growing trade ties between the two neighbouring countries, it becomes important to analyse the distribution of gains from their mutual trade. Hence, this study attempts to analyse the trends in India’s terms of trade with China. For this purpose, India's Net Barter Terms of Trade (NBTT) with China has been computed for the period from 1992-93 to 2004-05. For most of the years, during the study period, India experienced favourable terms of trade with China as compared to its overall unfavourable terms of trade. However, it has also been found that India's terms of trade were greatly influenced by one single commodity named iron ores & concentrates.