India-China economic relations cons

India-China economic relations constitute an important element of the strategic and
cooperative partnership between the two countries. Several institutional mechanisms have
been established for enhancing and strengthening economic cooperation between the two
countries. Besides the India-China Joint Economic Group on Economic Relations and Trade,
Science and Technology (JEG) and the India-China Strategic and Economic Dialogue (SED), a
Financial Dialogue has also been taking place between the two countries since 2006.
India-China Financial Dialogue: In accordance with the MoU on the Launch of the Financial
Dialogue between India and China, signed during Chinese Prime Minister Wen Jiabao’s visit to
India in April 2005, the two sides have since successfully held five Financial Dialogues in April
2006, December 2007, January 2009, September 2010, and November 2011 respectively. The
Fifth India-China Financial Dialogue was held on November 8, 2011 in New Delhi. A Joint
Statement was signed and released at the end of the Dialogue. During the Dialogue, both sides
exchanged views on the global macro economic situation and policy responses, with specific
reference to current risks to the global economy and the role of India and China in the post
crisis recovery phase. Discussions also took place on G20 issues including reforms in the
International Monetary System and the Framework for Strong, Sustainable and Balanced
Growth. The Sixth India-China Financial Dialogue is scheduled to be held in China in the last
quarter of 2012.
Banking Links: Many Indian banks have established their presence in mainland China in the last
few years. Four Indian banks, namely, State Bank of India (Shanghai), Canara Bank (Shanghai),
Bank of Baroda (Guangzhou) and Bank of India (Shenzhen) have branch offices in China. At
present, State Bank of India is the only Indian bank to have authorization to conduct local
currency (RMB) business at its branch in Shanghai. Besides, the following representative offices
of Indian banks are also operating in mainland China:
(i) Axis Bank, Shanghai
(ii) Punjab National Bank, Shanghai
(iii) Union Bank of India, Shanghai
(iv) ICICI Bank, Shanghai
(v) Bank of India, Beijing
(vi) Union Bank of India, Beijing
(vii) Allahabad Bank, Shenzhen
(viii) UCO Bank, Guangzhou
(ix) Indian Overseas Bank, Guangzhou
(x) State Bank of India, Tianjin
More Indian banks are planning to upgrade their Representative Offices in China to branch
offices and existing branch offices are applying for RMB license. In early 2011, Industrial and
Commercial Bank of China (ICBC) secured a license to start banking operations in India. ICBC
inaugurated their Mumbai branch on September 15, 2011. This marked the opening of the first
branch of a mainland Chinese bank in India.
Various Government institutions and agencies from the two countries have also been
interacting with each other for furthering cooperation in the areas such as taxation, human
resource development and employment, health, urban development and tourism. There is a
close exchange and interaction between the economic think tanks and scholars as well.