Key words: global financial crisis, China, India, bilateral trade, economic policies, Sino-Indian trade, trade disputes 

The ongoing global financial crisis seems to be taking its toll on world trade and trade relations amongst all great powers have sneeked into a recession mood. Bilateral trade between China and India, is no exception. For the first time since the two countries gave a ‘big push’ to economic engagement between them, the bilateral trade remained lower in the first quarter of 2009 against the comparative figures for the same period in 2008: both in absolute volume and in the growth rate. Add to this, the off and on acrimony over trade-related disputes such as the ban, until recently, on Chinese toys.

Suddenly, the bilateral trade that was riding a high tide seems to be in troubled waters and scepticism has overshadowed this fastest developing aspect of relations between the two countries. Will this slump be momentary? Will the bilateral trade relations be back on track once the recession period is over? What is the future of  Sino – Indian trade relations?