Analysis On Necessity And Feasibility Of China-india Free Trade Area

With the continuous development of economic globalization, regional economic integration process is also accelerating. Various forms of regional organizations have emerged, it's not only conform to the development of regional economic integration trends in the world, but also the application of comparative advantage theory in the real world, making members to learn from other's strong points,close the gap and develop together. And as two largest developing countries and the members of BRICS, at the same time developing their own economy, making Asian countries and emerging countries to enhance the international competitiveness is also one of their main responsibilities. Therefore, in the current period of rapid economic development of China and India, the formation of China-India FTA will not only benefit their political and economic interests, more beneficial to long-term interests of Asia and the whole world.Under the background of domestic and international attention on the economy of China and India, this paper analyzed the relevant issues of establishing China-India FTA. In the course of the study, this paper used quantitative and qualitative analysis combination of theory and practice of multi-angle,multidisciplinary research methods. First, the use of large amounts of historical data to analyze status of China and India on trade and investment provides a realistic basis for China-India FTA. Then, the main use of trade complementarity index and the global trade analysis model to analyze the necessity and feasibility of establishing China-India Free Trade Area. Finally, for the above analysis and the problems exist in the process of establishing China-India FTA, this paper gave some feasibility proposals.By analyzing economic factors, such as trade and investment, etc and non-economic factors, such as political and geographical points, etc between China and India, and the international situation of regional economic integration outside China and India, drawing a conclusion that there is a greater promoting factor than hindering factor on the problem of establishing China-India FTA. We believe that through the joint efforts of China and India, it will eventually realize the "win-win" situation of China-India FTA.