Globalization appears to have entered a phase where the costs emanating from geopolitical risks are beginning to overshadow the benefits of internationalization of business operations. It is evident in the difficulties both foreign and Indian businesses are experiencing in scaling their businesses in India because of the Indian government's clampdown on issuing business and employment visas to Chinese passport holders. Similarly, Chinese foreign direct investment into India is also subject to greater scrutiny which could potentially derail India's global manufacturing ambitions. The voices acknowledging that India needs to recalibrate its suboptimal economic engagement with China are few and far between, and the acknowledgment comes with a "proceed with caution" approach.

In such a dynamically changing geopolitical landscape where nations find themselves interdependently integrated into the global economic system, the stature of the Indian and Chinese economies cannot be discounted. Embracing multipolarity with a vision to advance the interest of the Global South, the two countries should keep their political differences at bay and design an optimal economic engagement framework between them. This is imperative now, given the need to join hands to address common global issues such as climate change.

How should the world's two most populous nations, approach each other so they can progress together? Can these two countries capitalize on their cultural similarities, and not allow political differences to get in the way of a competitive collaborative joint effort? This collaboration will not only fulfill bilateral needs and wants, and iron out mutual differences, but will also benefit other countries, thereby facilitating joint international development cooperation. Optimizing the economic collaboration between the two countries has the potential of proposing to the world a new multipolar development paradigm. The paradigm is characterized by the understanding that every nation desires to grow and have a voice on the global stage. It is a development paradigm that calls for care not to step on the sovereign toes of other nations and respect and for their aspirations and support their independent decisions and decision-making processes. When nations are provided with this individualistic space at the collective global high table, a sense of being equal partners emerges. Ideologies converge and a cooperative and conducive environment is created to conduct business among nations. This automatically opens doors for dialogue and negotiations.

Domestic demands mean countries will continuously align and realign, based on their economic interests, with those that take cognizance of their individuality and also assure them of noninterference in their domestic internal affairs — in other words, on an equal footing and a level playing field.

Approaching nations with this multipolar developmental paradigm, the two countries can collectively combine their independent strengths, thereby changing the global discourse on economics and politics. This combined potential was evident at the BRICS 2023 forum in South Africa where the two countries independently highlighted their sectoral competitiveness in an attempt to remain appealing to global financial and human capital. Combining this sectoral competitiveness with their specific respective skill sets, an international developmental competitive collaboration between the Asian neighbors has the potential to create an environment of mutual trust facilitating the growth and developmental processes of receiving nations. Besides, both stand to benefit directly from the resulting spillover accruing from this collaboration. This impact can also be internalized by the people involved, both directly and indirectly.

For example, both countries have been capitalizing on their independent strengths while engaging with African countries. Yet both countries have their own strains and restraints in the engagement. An international development competitive collaboration between them would therefore help in ironing out these strains whilst continuing to capitalize on their independent strengths. For instance, India's linguistic skills and cultural affinity with African nations complement China's effective process deliverables, offering a balanced approach to engaging with Africa.

Such joint international competitive collaborations between the two nations can be employed elsewhere, be it in Southeast Asia or the Pacific Island nations. Each nation's weakness can be filled by the strength of the other. Partnership between India and China can pave the way for global development in a multipolar world.

It is time to welcome a peaceful and prosperous multipolar world where sharing and caring for global resources are truly a shared responsibility.

Natasha Agarwal was a visiting research scholar at College of International Development and Global Agriculture at China Agricultural University. Paresh Batra is an independent concept researcher based out of Mumbai, India. The authors contributed this article to China Watch, a think tank powered by China Daily.

Contact the editor at editor@chinawatch.cn.