Growing Trade, Growing Concerns: India's Economic Tightrope with China

The economic rapport between India and China continues to thrive, with trade figures rising significantly. However, the skewed trade balance, largely in favor of China, remains a critical issue. Indian authorities express concerns over the increasing trade deficit and the hurdles Indian products face entering the Chinese market.

Prime Minister Narendra Modi emphasized the importance of Indo-Chinese cooperation for global economic stability, proposing a strategic relationship founded on mutual respect. India's export statistics indicate a staggering 86 per cent dependence on China in the electronics sector, among other categories, revealing an urgent need for diversification.

To mitigate risks, India has rolled out production incentives and quality standards. The government encourages domestic manufacturers to explore new supply chains, while imposing anti-dumping duties on fair trade practices. Steps to bolster local industries aim to curb import dependence and safeguard economic interests.

(With inputs from agencies.)