- Prelims: Current events of international importance(BRI, Regional forums, G20, G7, SCO, EEZ etc
- Mains GS Paper II: Bilateral, regional and global grouping involving India or affecting India’s interests, BRI and issues associated with it etc
ARTICLE HIGHLIGHTS
- The year 2023 marks a high point in India’s diplomacy-presidentship of:
- Shanghai Cooperation Organisation (SCO)
- G-20.
INSIGHTS ON THE ISSUE
Context
Sessions held by China recently:
- The annual sessions of the National People’s Congress of the People’s Republic of China
- The National Committee of the Chinese People’s Political Consultative Conference.
The path to modernisation for China:
- It is based on China’s practices with a focus on high-quality development.
- Modernisation of a huge population
- There is common prosperity for all, material and cultural-ethical advancement, harmony between humanity and nature, and peaceful development.
China and India-Commons:
- Two neighboring and ancient civilisations, with a combined population of 8(two point eight)billion
- China and India are representatives of developing countries and emerging economies.
- India and China are both in the process of national rejuvenation and a crucial period of modernisation.
China’s focus areas:
- “Steady growth:
- In 2022, China’s economy grew by 3% with a total of 12 million(approx) urban jobs
- China’s GDP increased to 121 trillion yuan (approximately $18 trillion)
- China registered an annual growth rate of 2(five point two)% over the past five years and an annual growth of 6.2(six point two)% over the past decade
- People’s well-being:
- Alleviation of close to 100 million rural residents from poverty.
- Over 70% of the government’s expenditure went toward ensuring people’s well-being.
- Basic old age insurance covers 05(one point zero five)billion people, an increase of 140 million.
- Living standards continue to witness new improvements.
- Opening up:
- In 2022, China’s total volume of trade in goods exceeded 40 trillion yuan, registering an annual growth rate of 6(eight point six)%.
- China’s actual use of foreign capital was up by 8%
- China remained one of the top destinations for foreign investors.
- The overall tariff level continues to fall, from 8(nine point eight)% to 7.4(seven point four)%.
- Win-win cooperation:
- In the period 2013-2021; China’s contribution to global economic growth averaged 6(thirty eight point six)%, higher than that of G7 countries combined (25.7(twenty five point seven)%).
- Chinese Global Development Initiative (GDI): More than 100 countries have expressed their support and over 60 countries have joined the Group of Friends of the GDI.
Trade between China and India:
- China and India are important trading partners, with bilateral trade volume reaching $98(one thirty five point nine eight) billion in 2022.
- Trade deficit: India’s import of equipment and materials from China does reduce the overall cost of “Made-in-India” products, benefits
- Indian downstream industries and consumers, enhances the competitiveness of Indian exports, and in turn facilitates India’s integration into global industrial and supply chains.
Way Forward
- Investments by Chinese enterprises have created a large number of jobs for the Indian people and contributed to India’s economic development.
- The Chinese Foreign Minister: The development and revitalisation of China and India embody a boost to the force of developing countries
- It is one that will change the destiny of a third of the world’s population and have a bearing on the future of Asia and beyond.
- India’s External Affairs Minister: The Asian Century will happen when China and India come together.
QUESTION FOR PRACTICE
Critically examine the aims and objectives of SCO. what importance does it hold for India.(UPSC 2021) (200 WORDS, 10 MARKS)
