Top Five Global EconomiesIt’s celebration time for the two Asian giants, India and China. Towards the close of 2005, China got its GDP revaluated, which declared the economy size to be larger by as much as 17 percent - worth $278bn in monetary terms. This revelation has placed China ahead of even the big economies like Italy, France and the UK, thus making it the fourth-largest economy of the world. That was a jump of two positions, from sixth to fourth, precisely.



After China, now it’s the turn of India to undertake the same exercise. By January 31, 2006, when it will be revising its base year for GDP calculations, economists predict that at the current pace of Indian economy, the change is sure to carry forward the GDP figures. As for the likely size of the revaluated economy, no specific figure can be given right now. All one can say at the moment is that the last time it was done in 1993-94, the size of economy had grown by 9 percent.



In such a bright scenario, it’s indeed a welcome move to see the two countries celebrating the year 2006 as the India-China Year of Friendship. This move is sure to work towards strengthening the bilateral ties and resolving border disputes. As of now, these Asian neighbors had been working at cross-purposes. But the cordiality and optimism being exuded by both sides are a pointer to the fact that the two countries have finally realized the vanity of playing neighbours-at-war to each other all these years.



Exchange of mutually beneficial expertise and ideas, and initiation of steps to add constructively to each other’s economy will place both India and China on a higher pedestal, both economy-wise and strategically.