A Case Study on Development of India China Border Trade for the Development of North East India

Abstract

Border trade is a type of trade in local products of limited value by the people residing within a few kilometers on either side of the international border. Today India’s border trade is conducted along India’s international borders with Nepal, Bhutan, Bangladesh, Myanmar and line of control with Pakistan and line of actual control with China. The contribution of border trade is negligible in Indian economy but it has immense impact on its relationships with the neighbouring countries as at a bilateral level any amount of border trade has a very big confidence building effect as it encourages constructive engagements, stabilises border’s political situation by reducing frictions and gives a legal meaning to the disputes of the international borders. This paper will study the importance of border trade between India and China in the current world political scenario. This study has been casual, exploratory and empirical in nature and the data needed for research work has been collected by using both direct and indirect method of data collection.