ABSTRACT

This chapter provides a nuanced understanding of Indian development cooperation through the comparative lens of Chinese aid. Despite Indian tendencies to maintain boundaries with China, the chapter shows that India and China do share many similarities, primarily in the fundamental principles of South-South cooperation (SSC) delivery. India and China also adopt a broad definition of development that intertwines aid with trade, investment, and technology transfer, thus offering an alternative to the Organisation for Economic Co-operation and Developments (OECD's) aid definition. Although China spends most of its money in filling in the hard infrastructure gap by building transportation and power facilities, India addresses the capacity gap, making full use of its advantages in education, service, and IT sector. Both countries have accordingly adjusted their development cooperation strategies, with India extending more loans for building local infrastructure and China increasing investment in human resource development. The two countries have worked together to advance similar positions in global trade and climate change negotiations.