Name: Deepika Bagga
Country: India

Year: 2026
Volume: VOL-17 , ISSUE NO.-2 Special Issue July-2026 (SN)
Page Number: 77-88
DOI: https://doi.org/10.5281/zenodo.22342602

This paper empirically examines the long-term economic divergence between India and China through a commerce-oriented lens, focusing on trade integration, manufacturing performance, foreign direct investment (FDI), and institutional quality. Although both countries, initiated market-oriented reforms during the late twentieth century, their economic outcomes have differed substantially, with China achieving significantly higher levels of industrial output, export competitiveness, and global value chain integration. Using secondary data from the World Bank, UNCTAD, WTO, and Worldwide Governance Indicators for the period 1990–2023, the study employs descriptive statistics, trend analysis, and regression-based techniques to assess the relative contribution of commerce-related variables to economic growth. The findings indicate that China’s superior performance is strongly associated with higher manufacturing value addition, sustained FDI inflows, greater trade openness, and stronger instit