Growing India China Trade Flows

An article in the International Herald Tribune (February 9, 2011) describes the growing trade flows between China and India, projected to grow by 62 % by 2015, after growing by a factor of 20 in the last 10 years.  Air cargo takes 6.5 hours from Guanghzou to Mumbai, container ships take 2 weeks, with land routes almost nonexistent.  The growing air cargo traffic has caused FedEx and DHL to add new flights.  But trade flow from China to India seems to be twice the flows in the return trip.  Will these trade links revive a 2000 year history of trade along the Silk Road ? How sustainable will these flows be and how ill they be affected by China’s desire to move further up the global supply chain ? How will India’s weak infrastructure improve to cope with these north-south flows ? Will new supply chains spread north-south enable companies to leverage the service skills in India and the manufacturing prowess of China ?

About aviyer2010

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