India will become a “trusted global manufacturing hub,” according to the ruling party’s pledge. The nation still has a ways to go before achieving atma nirbharta, or self-reliance, according to a report by the economic think tank Global Trade Research Initiative (GTRI).
The analysis claims that over the course of five years, India’s imports from China increased from over $70 billion in 2018–19 to over $101 billion in 2023–24, leaving a trade gap that exceeded $387 billion.
Source: Money Control
China now accounts for 30% of New Delhi’s imports of industrial goods, including electronics, machinery, and telecom, up from 21% during the previous 15 years, highlighting India’s growing reliance on the Dragon. The fact that India’s yearly exports to China have remained flat between 2019 and 2024 at about $16 billion is equally depressing.
Despite India’s resolute stance against China in the diplomatic and military spheres during the June 2020 Galwan skirmish, the Chinese march continues unabated in the economic sphere. Despite India’s persistent insistence that the resolution of the boundary issue is a necessary condition for the restoration of normal relations, China remains ahead in bilateral commerce.Beijing’s ruse to disentangle the border impasse from commercial and economic relations is clearly working quite well.
Source: Firstpost
The GTRI predicts that imports from China will increase in the upcoming years, which is concerning. India faces geopolitical, economic, and strategic ramifications from the massive trade deficit. To boost productivity and resilience in the manufacturing sector, New Delhi must close the gaps in the Make in India initiative. India won’t be able to realise its aim of becoming a major manufacturing hub until it overcomes China’s oppressive influence.
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