India’s Narendra Modi-led administration, despite the desire for self-sufficiency, is becoming more and more dependent on Chinese imports as China’s trade deficit with India surpasses $1 trillion.
As per a report in The Quartz, for the past few years, Indian Prime Minister Narendra Modi’s government has urged businesses to “make in India” to minimize their reliance on Chinese-made goods.
Despite spending billions of Indian rupees to increase self-reliance, trade deficit has exceeded $1 trillion.
“In 2021, annual two-way trade crossed $100 billion for the first time, reaching $125.6 billion, with India’s imports accounting for $97.5 billion, pegging the imbalance at close to $70 billion.”
Chinese imports have increased by nearly 30% in the last five years.
Two years earlier, to control India’s reliance on Chinese goods, Indian customers stopped buying any product with a ‘Made in China’ label on it.
By the end of 2020, Chinese firms started sending products to market with the label “Made in PRC” i.e. made in the People’s Republic of China. It proved to be a great move to conceal the origin of the product.
Relations between the two states became more hostile when India started banning Chinese applications but none of these steps helped India whereas its reliance on China kept increasing.
Trade ties between India and China were first established in the 2000s.
The original report appeared here