The Silk Road Economic Belt is an international trade and cooperation effort, encompassing a large number of nations, to enhance the current global economy. Starting in China and going through the Middle East, it covers the countries of India, Myanmar, Pakistan, Iran, and Afghanistan. This system was designed to provide a way to promote trade without the need for expensive shipping routes and in turn, allow for better connectivity between countries.
These types of systems have been used before, but they were mostly focused on trade within Asia. With the advent of the internet, many businessmen are realizing the potential that such a system can have. By opening up trade routes to other countries, it opens up the door for more markets, allowing for better cross docking and increased foreign investment. For those with a skill set, they have the opportunity to work in these fields and earn a good salary. For those without the skill, it opens up the door to working at home or doing something that makes money without the hassle of travel.
The Chinese, Indian, and Pakistani traders all came together to form this giant trade zone. The US had no stake in the creation of the Silk Road Economic Belt and was never involved in the trade whatsoever. However, the US was very instrumental in the later development stages. It offered financial aid, technology, and a forum for cooperation. This set the stage for future economic growth between the five nations Silk Road economic belt.
When this belt was first laid out, it covered a distance of about 500 kilometers. Now, it has increased to about one thousand eight hundred kilometers. This is because the economies of India, China, and Pakistan started to develop at a steady rate, allowing for the expansion of the trade route. While some say that the economic Silk Road can only be successful if the five nations continue to trade with one another, others are optimistic that the situation will change in the near future. Some experts are even predicting that this trading system will be completely destroyed, leading to an end to the global economic crisis.
Each country has its own view on the future of this trade route. However, it should be noted that the customs-free zone will not affect trade between India and China. On the contrary, Pakistan views the Belt as an impediment, as it hinders them from trading with the rest of the world. In addition, Pakistan does not see eye to eye with India on the issue of Baluchistan. All in all, the Belt is seen as an obstacle by the countries involved.
However, this doesn’t mean that things are all bad between India and Pakistan. On the contrary, both of the countries have made a lot of progress recently. For instance, China’s economy has grown by leaps and bounds in the past few years, while India has invested a huge amount in infrastructure development in the past decade. In fact, Pakistan’s economy is expected to grow at a rate of around 5% during the next decade. Given all this, the two countries have a lot in common.
They have a strong partnership in the defense field, they have agreed to develop a nuclear deterrent, and they are both trying hard to diversify their energy sources. In addition, both of them have kept the Middle East in mind. In fact, during a recent visit to India, China offered to open up trade with India through Pakistan. This shows how important Pakistan is to India’s economy. At the same time, China has realized that Pakistan too needs markets for its commodities.
In short, China-India economic relationship can be the Silk Road Economic Belt’s best friend. Both sides have a lot in common, and this relationship has the potential to expand the regional connectivity. At the same time, India is also looking to expand its influence to the east. It has offered loans to Taj Mahal in India, which could increase the connectivity further. In fact, with the right policies and projects, it could emerge as a major transit country for China goods moving from the west to the east.