Research On Complementarity In The Development Of Sino-Indian Merchandise Trade

China and India are close neighbors and both are the BRICs. As the world’s largest developing countries, the two have been among the rapidly rising power and are known as "twin-engine" of economic development in Asia. Accounting for almost forty percent of the global population, the two countries can find its tremendous market potential. In recent years, the vigorous development of Sino-Indian economic trade relations and the bilateral trade volume growth is remarkable. After the global financial crisis, the United States and the European Union are in economic difficulties, with sluggish growth and shrinking demand, under the condition of the weak in the external market, the two countries should strengthen mutual cooperation, in order to promote the development of their respective.Based on this background, in this paper, from the current situation of the development of bilateral trade, studied the scale of the trade between the two countries and bilateral trade intensity of each other, we can find that the trade cooperation in recent years between the two countries are increasingly closely, the volume of trade is rising, both have entered the high-speed development of the fast lane. Then the paper will focus on the characteristics and presented the structure of bilateral trade in goods on the trade development potential, the influence of the two countries to trade between the two countries commodity classification data as the foundation, the combination of theory and practice, with export similarity index, revealed comparative advantage index and trade complementarity index such as quantitative analysis method from the perspective of empirical analysis, the data for bilateral trade between the two countries concluded bilateral trade complementary strong items. Among them, China to India are highly complementary goods are mostly concentrated in the capital and labor intensive products, dominated by machinery and transport equipment, and most of Chinese exports to India resource-intensive products and labor-intensive products. Base on the above discussion, A further discussion of China and Indian trade in goods cooperation other influencing factors, Analysis the advantages and obstacles to bilateral cooperation, favorable conditions including the geographical advantages of the two countries in recent years, macro-economic complementarity and enhanced mutual political trust, of course, there are many problems in China and Indian trade cooperation. For example, the frequent anti-dumping investigations, tariff barriers and obstacles factors such as the border dispute. At the same time, the political and economic requirements are to strengthen trade cooperation. As a whole, those bad factors are not important; the two countries cooperation must be greater than the competition. In the last, the paper aim at the trade development situation between China and India, the paper will give some suggestions for trade In-depth development, Enhance mutual political trust, Expand the scale of the development of complementary products, promote the intra-industry trade in the international division of labor, to promote the establishment of the China and India free trade area and so on.