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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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China's joining of WTO in 2001 has completely changed its economic structure and its entry in WTO proved to be a landmark event in the global economy. As a result, China's trade relations with the world have improved significantly particularly with India. Both, India and China are the fastest growing economies in the world since they have grown at rate of 8% and 10% GDP respectively. The total trade between India and China was reached to $60 billion in 2010. However, the major change in the trade relations between India and China has come after China's joining of WTO in 2001. In the above background, this paper is divided into three parts. The first part of the paper examines the direction of foreign trade of China after becoming a member of WTO and, the second part analyzes India's trade relations with China (Pre and Post China's joining of WTO). The final section of the paper delineates the major constraints between India and China for improving trade relations.

The industrial policy is back in vogue of the ‘development discourse’ both in the developed and developing countries due to suboptimal success of market-oriented policies in facilitating socioeconomic and structural transformation. The rise of debate and discourse on industrial policy is also shaped by many other developments such as evolution of newer technologies and their impact on manufacturing, global trade protectionism and pandemic-induced global supply chain disruption( s) among others. The increased interest in the industrial policy at the time of global protectionism has refreshed the old debate in the developing countries on the choice of industrial model, that is, import-substituting industrialization (ISI) and export-led industrialization (ELI). In this context, this article examines India’s industrial strategy under the Self-Reliant India Mission with a special focus on trade policy, investment policy and production-linked incentives (PLI) to understand whether it is adopting policies that squarely fall under the ISI or ELI model. The findings of the article are based on analysis of the trade policy, investment policy and PLI scheme to illustrate that India is adopting policies that broadly fall under the ambit of ISI model thus taking India economy back to re-adoption of inward-looking policies of prereforms era. industrial policy, trade policy, investment, production subsidies, free trade agreement and industrial revolution