ABSTRACT

Sino-Indian relations are marked by an appreciation of the need for constructive engagement, which is economy driven, and a negative nationalism based on military strength. This chapter reviews their historical evolution, trade and economic relations, political and military relations, border conflict, and interactions with third countries. China and India jointly spearhead the international tilt towards Asia. China must find the right balance between authoritarianism and democratization, while India has to reconcile its crisis of governance with a rising demands for public goods. Buddhism brought the two countries together closely. The area of economic growth and trade manifests both convergences and divergences between China and India. Foreign private participation should be encouraged in education, healthcare and infrastructure for ensuring inclusive economic growth. An aspect of Indian foreign policy that has acquired much attention is its ambition to 'Look East' towards Southeast and East Asia.