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GTRI Warns Against Over-Reliance on China: Calls for Self-Reliance as Trade Deficit Hits $100 Billion
GTRI: According to the GTRI report, even though China has relaxed export restrictions, India will have to reduce its dependence on China. Self-reliance is the only guarantee of security for India amid trade challenges.
China's decision to relax export restrictions is appreciated, but self-reliance is the sole succour for India in the face of trade difficulties. The Global Trade Research Initiative (GTRI) has recommended this in a report. The report claims that India cannot overlook its long-standing economic reliance on Chinese imports.
Indeed, China had prohibited the export of rare earth metals, creating a whirlwind in India's electronics and electric vehicle industry. In June, Chinese battery giant CATL recalled its engineers from Foxconn's Chennai plant, affecting operations.
Despite the recent relaxation, the economic imbalance remains deep. India's trade deficit with China reached a record $100 billion in FY25. At the same time, Beijing has openly supported Pakistan in the recent war. A trade deficit occurs when a country buys more goods and services from other countries than it sells to them.
