India’s cautious rapprochement with China has eased some bilateral tensions, but New Delhi’s continued restrictions on Chinese trade and investment reflect domestic political pressures and concerns about economic dependence that risk undermining its industrial ambitions. While Chinese competition poses challenges, access to Chinese capital, technology and intermediate goods could strengthen Indian manufacturing and export competitiveness, particularly as Chinese firms increasingly relocate production overseas. Rather than relying on unilateral protectionism and limited bilateral trade agreements, India could benefit from deeper engagement through regional frameworks such as RCEP and the CPTPP, which offer opportunities to manage economic tensions with China while integrating more fully into Asian production networks.
by East Asia Forum Making the Chinese dragon–Indian elephant tango work
