Volume 3, Issue 9 (September, 2014) Online ISSN-2277-1166 40 Available online on www.abhinavjournal.com Published by: Abhinav Publication Abhinav National Monthly Refereed Journal of Research in Commerce & Management INDIA’S FOREIGN TRADE WITH CHINA WITH SPECIAL REFERENCE TO AGRICULTURAL COMMODITIES Nilanjana Kumari Research Scholar, Faculty of Commerce, Banaras Hindu University, India Email: nilanjanakumari.jobs@gmail.com ABSTRACT India’s has been in relationship with China since 16 th century, which has strengthened with passage of time. Besides, trade relations we have been sharing strong bond of cultural exchange. Our bond of friendship plays a dual role of being competitive as well as complementary to each other. The present paper has been compiled with a view to analyse the change in trade relation of India and China from pre-to-post liberalisation period. The paper also throws light on comparative advantage of India over China’s agricultural exports, along with the analysis of trade intensity of our country with China. Keywords: China; Revealed Comparative Advantage; Trade Intensity; Bilateral Relation INTRODUCTION The rapid economic integration of China and India in the world economy has changed the trade and investment flows. Following which even the Asian continent has witnessed a structural shift in trade practices viz. from multilateral to sub-regional to bilateral trade agreements. India and China have been in bilateral relation for more than two centuries. Their millennia-old relation is strongly based on continuous exchange of culture, heritage, goods and services. 1 The trade relation between both the parties has caught impetus with initiation of sub-regional and bilateral regional cooperation in areas of mutual benefits. Our exports to China and our imports from China have noted a sea-change from the pre-to-post liberalisation period. OBJECTIVE OF STUDY The following paper has been written with the objective to analyse the changes in India’s trade with China since the liberalisation of its trade. The other objectives covered are: 1. To study the commodity composition of India’s trade with China. 2. To study the relative comparative advantage of India over China in export of agricultural and allied commodities in world market. 3. To analyse the trend of trade intensity with China during the period 2001-02-2012-13. RESEARCH METHODOLOGY The study is analytical in nature and covers a period of 12 years (2001-02-2012-13). The study portrays a detailed view of our trade with China along with the statistical analysis of our comparative advantage in export of agricultural products to the world market. The study is divided into nine parts: Introduction, Objective of study, Research methodology, Literature Review, Trends in and Growth of India’s trade with China, Commodity Composition of our trade with China, Relative Comparative Advantage of India in export of agricultural and allied commodities over China to the world market, Trade intensity of India’s Trade with China and Conclusion. The data use in the study is secondary in