The relationship between the government of India and other international relations such as the bilateral trade of China vastly helped industrialise India as they built political confidence between the two nations. This has contributed to both countries’ overall tranquillity and peace in the area facilitating both areas. China and India both represent Asia’s two largest and most dynamic societies taking as the world’s top two largest populated countries, with over 1.2 billion people (half of the world’s population added together). The positives on India trading with China are: while the manufacturing’s done by the local company: there is no need to invest in plants overseas decreasing the risks of asset expropriation, currency fluctuating can be managed better, contractor can retain the control of marketing, and if the product is manufactured in a closer region, it is easy to sell especially to governed customers and the transport costs are lower as well as at time can obtain lower production costs. Trade being the centre stage of their interaction has caused both countries to have an annual turnover of a few million dollars since the 1980s. China’s foreign trade stood at 850 billion dollars for mid 1900s and exceeded to 1 trillion dollars by the end of the 20th century because of the trading of raw materials such as cotton and spices and raw materials from the mines of India, following the trade reforms of import and export India set during the early 20th century.