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Abstract
India and China are emerging as the new trendsetters in the global economy as they represent Asia’s largest and most dynamic societies. Both the countries together constitute one-third of the total world population and one-fourth of the world’s skilled labour force. The flourishing bilateral trade between the two titans is the strongest pillar of their rapprochement. Since the two countries are geographically integrated, border trade between the nations brings an economic transformation in their remote and underdeveloped regions. Against this backdrop, the present paper tries to analyze the competitiveness of the exports and intensity of imports of India and China. In addition to this, the bilateral trade potential between India and China is also being analysed. The competitiveness of exports is analysed by the Revealed Comparative Advantage (RCA) Index and intensity of imports is analysed by Revealed Import Intensity (RID) Index. Both the indices are matched to ascertain the products in which the trade potential exists in the two countries. The finding of the study revealed that there exists a moderate amount of trade potential between the two countries. If the exports are extended in the commodities in which trade potential exists, this can lead to a substantial increase in bilateral trade.