China is India's largest trading partner

When comparing development between regions, it is important to look beyond income and analyse social indicators also. In most such indicators India lags Asean and China. Infant mortality is 65 per 1000 in India, while it is 30 and 38 in China and Asean. Life expectancy is lowest in India (65 years), while it is 71 in China and 68 in Asean. The knowledge quotient is also the lowest in India, with only 69 per cent literacy, whereas it is 90 per cent of China's and Asean's people are literate.

  The performance of these three regions is also a function of the government expenditure in health and education. India and China spend only about 5 per cent of their GDP on health, while Asean spends 11 per cent. Asean's expenditure on education is also much higher, at 17.4 per cent of GDP. It is 4.1 per cent in India, and only 2.9 per cent for China.

  Prosperity indicators also portray a similar picture. There are more TV sets, computers, telephones, etc., per 1,000 population in China and Asean compared to India. Electricity consumption in India (395 kWh per capita) is less than half of China's (893 kWh) and Asean's (712 kWh). In India, 35 per cent of the people live below the $1-a-day poverty line. China and Asean are better off at 17 per cent and 11 per cent respectively. In the external sector, China and Asean's performance is clearly superior to that of

India. India's exports and imports total about $125 billion. This is way behind China's total trade of $851 billion. Asean is also up there with $847 billion. Now, China is India's largest trading partner, having edged out the US last month. The total trade is worth over $13.5 billion. India's economic engagement with China is bound to expand.