Subrata Majumder
Amidst the world deepening into geopolitical tensions and increasing uncertainty with regard to trade policies, India-China relations are inching towards a thaw. Both are now at the drawing boards to mitigate the wide trade balances between the two countries and give a new look to Chinese investment in India. Currently, Chinese investment in India is restrictive and barred from automatic approval, owing to security concerns, despite being the second largest trade partner for India.
Burying the hatchet over boundary disputes, India made a volta-face to Chinese investment. According to the Economic Survey 2023-24, India focused on a relook to Chinese investment and its significance to refurbish Make in India.
At present, the USA is the prime driving force for India’s external economic growth. It is the biggest trading partner, including the prime trigger for India’s exports. Additionally, it is one of the top three foreign investors and the biggest employer of Indian IT talents abroad, pushing India’s service exports.
But, with Trumponomics invoking tariff weaponization to make America First, India’s over-dependence on the USA signals a major threat to its external economic growth. At present, the USA accounts for 17 percent of India’s exports and 54 percent of India’s IT exports.
No comments:
Post a Comment