| Since the 1990s global multilateral trade negotiations has been slow and difficult. In order to maximize the share dividends of global economic growth, many countries have signed one or more regional free trade agreements to achieve trade and investment liberalization. In this context, the number of regional trade agreements has increased dramatically.By the end of 2013, the numbers of regional trade agreements which is in force had reached 258, the majority of WTO member states have joined one or more regions trade agreement. As its flexibility and initiative, the Free trade agreements (referred FTA), especially the bilateral FTA, has become the main form of regional economic cooperation. According to the WTO statistics, the number of FTA in force until the end of 2013 has been reached as many as 217, accounting for 84% of the number of regional trade agreements.India and China are both the world’s largest developing country and member of the BRICs countries. Each of them has a huge market which has more than 1 billion people. China and India are both located in the Asian and neighbors with each other. Currently, the development of their trade is rapid, forming the China-India FTA will promote the further development of both the economy. Meanwhile, the desire of which to strengthen economic and trade cooperation is also more and more stronger. As early as October 2007, China and India have already completed the China-India Regional Trade Arrangements (RTA) joint feasibility study.2010’s 《People’s Republic of China and the Republic of India joint communique》 contributed to the completion of China-India strategic economic dialogue mechanism. In 2013, Chinese Premier Li Keqiang and Indian Prime Minister Manmohan Singh vists on each other respectively in May and October. It was the frist time since this is the first time the two prime ministers visit with each other since 1954, which indicating that the Sino-Indian relations are constantly speed.However, trade liberalization has always been a double-edged sword. The establishment of China-India FTA will not only bring development and opportunities, but also will bring crash to some domestic industry that is at a disadvantage. Due to the economic competitiveness between the two countries, the bilateral trade imbalance has become one of the main obstacles in China-India FTA construction. The trade imbalance between china and india is largely due to irrational trade structure, while the differences of their international industry competitiveness is the main reason of the irrational trade structure.In this paper, we will start from the the industry competitivenes between China and India,and then disscuss the Offensive and Defensive Strategies about China-India FTA. The specific research ideas are:Fistly, we will comb the theoretical basis and literature review of Industry Competitiveness and India FTA-related research, which will lay the theory foundation of the subsequent studies; Second, we will analysis of development overview about China and India’s economic and trade development and point out the trade imbalance between china and india; Third, Using the gravity model of trade to estimate the effect of establishing the China-India FTA; Fourth, we will have a comparition of the Industry Competitive in the two countries’s merchandise trade; Fifth, we will have a comparition of the industry competitive in the two countries’s servies trade;Sixth, we will try to put our the Offensive and Defensive strategies of Chins-India FTA based on the empirical results. |
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