A Pragmatic Approach to Indo-China Trade Relations and Self-Sufficiency

July 21, 2021

India and China are two emerging powers with complex relationships and competing aspirations.As neighbours, both share an extensive border and have had a fair share of disputes over territorial boundaries. In recent years, China has been increasingly showcasing military might to achieve its territorial goals. India has always viewed China’s advancements with caution. However, the pandemic, as well as Chinese incursions along the borders, have increased collective Indian distrust in China. Added to this, the fact that India is highly dependent on China for trade undermines India’s strategic position with China. Time and again, there have been outcries to decouple the Indian economy from the Chinese Economy. Anti China sentiments are felt across the population, and slogans like ‘Boycott China’ have become common. A section of the population views the ambitious ‘Aatmanirbhar Bharat Abhiyan’ to be a clarion call for the boycott of Chinese goods. In 2020, there was a major public agitation against China, with people protesting and throwing their Chinese TV sets out of their balconies. The government also banned certain Chinese apps, which is a reasonable move considering the possibility of the involvement of the Chinese government in the affairs of the companies behind the apps.Excessive dependency on China could prove to be detrimental to India. However, self-reliance should not be equated with a boycott of Chinese goods but should be facilitated by building domestic capabilities and diversifying trade connections with other countries. India is heavily reliant on China for a variety of goods ranging from plastic toys to electronic goods and even raw materials for pharmaceuticals. Such a dependency cannot be undone in a short time frame, and our approach to the situation at hand should be driven by proper research and in tandem with ground realities. What are some of the essential aspects that India should pay attention to so as to grow self-reliant and reduce dependency on China?

The academic report will explore the present state of Indo-China trade in detail, evaluate India’s efforts at self-reliance, and outline a roadmap to achieving reduced dependency on China in a post-Covid world.