In Le Monde Diplomatique, Martine Bulard reports on the rise of India and implications for both China and the US:
India’s trade with the US rose to almost 11% of the Indian total in 2005-6; trade with Russia, which was formerly its main partner, was only just over 1%.
India wants a lot more. Stunned by the speed with which the economy of China has taken off (3), India makes no secret of its desire to utilise its new relationship with the US to attract the investment that it lacks. In 2005 foreign direct investment (FDI) into China rose to $72.4bn; India’s FDI was only $6.6bn, although this may be an underestimate, since not all capital movements are recorded. The Indian government did proudly point out that it received 40% of FDI in information technology in developing countries, while China had only 11%. Even so, an abyss separates them. [Full text]
Also related, Indian Prime Minister plans to visit China later this year. See a People’s Daily report.
