GG News Bureau
New Delhi, 21st Jan. China has been engaging in a silent trade war against India, imposing restrictions on the export of critical goods and machinery, which could severely impact India’s economic growth, according to experts. The move has sparked concerns among Indian businesses and think tanks, with the Global Trade Research Institute (GTRI) urging India to reduce its reliance on China and strengthen trade ties with countries like Japan and South Korea.
China, a key supplier in sectors such as electronics, solar panels, and electric vehicles (EVs), has halted exports of essential components to India. This could lead to significant disruptions in production processes, pushing up production costs and triggering inflation within India’s domestic market. Experts warn that such actions by China could stunt India’s progress at a time when the country is experiencing meteoric economic growth.
Ajay Srivastava, founder of GTRI, emphasized the geopolitical implications of China’s move, describing it as a deepening trade conflict. “This signals deep geopolitical tensions and a trade war. We hope the India-specific restrictions will soon be lifted, as they will also harm China,” Srivastava said. He further added that India must look beyond China and forge stronger ties with countries like Japan and South Korea for critical imports.
The growing ties between China and Russia could further complicate India’s situation, as Russia, a long-time ally of India, may not be able to offer substantial support due to its own economic challenges. The ongoing war in Ukraine and the sanctions imposed by Western countries have placed Russia in a vulnerable position, limiting its ability to provide India with the level of assistance it might expect.
With China halting the supply of critical goods, Indian companies are facing delays and disruptions in their supply chains. In the face of these challenges, strengthening partnerships with Japan and South Korea emerges as a key strategy for India. The two countries can provide high-quality components, particularly in electronics, solar energy, and electric vehicles, reducing India’s dependence on China.
While China’s actions could harm India’s economy, they also risk damaging China’s own manufacturing and export sectors. As India diversifies its supply sources and fortifies its economic partnerships, the geopolitical landscape between these two Asian giants is set to become even more complex.
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