. China is a major supplier in some sectors, and these measures could lead to higher production costs. This could also lead to higher inflation in the domestic market.
New Delhi: China is employing all possible tactics to halt India’s phenomenal economic growth, effectively starting a silent trade war. The Xi Jinping government has imposed restrictions on the export of critical goods and machinery to India. According to think tank GTRI, India needs to reduce its dependence on China and strengthen ties with countries such as Japan and South Korea.
China’s move to cut off critical supplies to India could have a major impact on the country’s economy and production processes. China is a major supplier in some sectors, and these measures could lead to higher production costs. This could also lead to higher inflation in the domestic market.
Can Russia provide aid to India?
Russia, India’s most reliable ally, may not be able to provide substantial assistance on this issue. Expanding ties between Russia and China could prevent Putin’s government from providing unconditional support to India.
Furthermore, Russia’s current global situation does not allow it to scale up the level of support that India would expect. The ongoing war in Ukraine and Western sanctions are impacting Russia’s economy and limiting its ability to trade globally.
India needs to strengthen its partnership with Japan
According to think tank GTRI, India needs to strengthen ties with Japan and South Korea to reduce dependence on China. India needs to source high-quality parts for electronic equipment, solar panels, and EVs from these countries.
GTRI founder Ajay Srivastava said, “This signals serious geopolitical tensions and trade wars. We hope that India-specific restrictions will be lifted soon as they will also have a negative impact on China.” There is no doubt that China’s strategy will hinder India’s electronics, solar power and EV sectors.
But it will also affect China’s own manufacturing and exports. Indian companies are facing delays and disruptions in the supply of goods as China halts exports of parts and machinery. India can strengthen its position by strengthening ties with countries such as Japan and South Korea.
