Amit Kumar & Pranay Kotasthane
Multiple reports have confirmed China’s restrictions on the export of tunnel boring machines (TBMs) to India despite the two countries having concluded a deal on the disengagement of troops in Depsang and Demchok. This has led observers and experts to underline China’s increasing willingness and capabilities to halt India’s growth story.
As India frames a response to counter China’s economic coercion, it’s useful to assess the strategic impact of China’s economic restrictions. Our study of trade in TBMs indicates that India’s ecosystem is not as vulnerable to China’s actions as some of these reports suggest. We should respond to China from a position of strength. Here’s why.
The data sourced from India’s Ministry of Commerce shows India’s import dependence on China for TBMs (standard and self-propelling) by value and volume over the last six years. The graphs show that for the self-propelled TBMs, India hardly exhibits any dependence on imports from China, except for by value in 2021 and 2022. Even in these years, the dependence doesn’t appear too concerning. Secondly, 2021 and 2022 witnessed a huge uptick in India’s import of self-propelled TBMs, with the majority sourced from outside China.
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