China's easing of export curbs useful, but self-reliance India's only shield amid trade deficit: GTRI
's recent move to ease export restrictions on fertilizers, rare earths, and tunnel-boring machines to India is a welcome step, but self-reliance remains the only real safeguard for New Delhi against its widening trade deficit with Beijing, the
Global Trade Research Initiative
(
GTRI
) said in a report.
The GTRI report highlighted that India cannot ignore its deep economic dependence on Chinese imports.
This development follows Beijing's earlier curbs on critical minerals such as gallium, germanium, and graphite that disrupted India's electronics and electric vehicle sectors. In June 2025, Chinese battery giant CATL even withdrew engineers from Foxconn's Chennai plant, halting operations.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Join new Free to Play WWII MMO War Thunder
War Thunder
Play Now
Undo
Despite the recent relaxation, the economic imbalance remains stark. India's trade deficit with China has touched a record USD 100 billion in FY2025, while Beijing has openly supported Pakistan in the recent war. Such dependence, the GTRI cautioned, gives China significant leverage during crises.
A trade deficit occurs when a country buys more goods and services from other countries than it sells to them.
Live Events
GTRI also noted that the problem is structural. China currently supplies over 70 per cent of India's requirements in several key areas.
Everyday products are no exception, with laptops (80.5 per cent) and flat panel displays (86 per cent) dominated by Chinese imports.
Adding to the concern, India's share in bilateral trade has collapsed to just 11.2 per cent from 42.3 per cent two decades ago. This sharp decline highlights the fragility of India's supply chains and growing reliance on Chinese inputs.
To address this imbalance, the GTRI suggested that India move on multiple fronts. It recommended a reverse-engineering programme using IITs and CSIR labs to deconstruct imported goods and create open-access blueprints. These efforts could be tracked through a proposed "Localize-100" system to focus on the most critical imports.
The report stressed that while China's easing of curbs is a useful signal, it cannot mask the underlying imbalance in the relationship. For India, the only real shield lies in strengthening domestic manufacturing, cutting dependence on imports, and building resilient supply chains.
"A stronger, more self-reliant India will be better placed to engage China on equal terms, while keeping relations steady and pragmatic rather than hostage to sudden shifts," the report said.
In conclusion, GTRI noted that China's gesture is only a tactical move. India's true safeguard lies in reducing dependence, investing in deep manufacturing, and becoming a product nation capable of withstanding external pressures.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
24 minutes ago
- Economic Times
Dalai Lama succession: Govt says it doesn't take position on issues related to practices of faith
The Ministry of External Affairs (MEA) has addressed the Dalai Lama's July statement regarding his succession, clarifying that the Indian government maintains a neutral stance on religious beliefs and practices. India has conveyed its position, emphasizing religious freedom, to the Chinese side. The Central Tibetan Administration (CTA) head Penpa Tsering has challenged China's claim to the next Dalai Lama's reincarnation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Ministry of External Affairs (MEA) on Thursday said it has seen a statement issued by the 14th Dalai Lama in July about the institution of the Dalai Lama, and underlined that it "does not take any position" on matters concerning beliefs and practices of faith and of State for External Affairs Kirti Vardhan Singh said this in a written response to queries in the Rajya MEA was asked whether it is a fact that the government has "openly backed Dalai Lama's right to decide on his own succession"."Government has seen a statement regarding the institution of Dalai Lama issued by His Holiness the 14th Dalai Lama on 02 July 2025. Government of India does not take any position on matters concerning beliefs and practices of faith and religion," the MoS said."Government has always upheld freedom of religion for all in India and will continue to do so. Government's position has also been conveyed to the Chinese side," he July, Central Tibetan Administration (CTA) head Penpa Tsering countered the Chinese government's claim to the next Dalai Lama and said they should first look for the reincarnations of its own leadership."The Chinese government also says they will look for the Dalai Lama's reincarnation within the borders of China. His Holiness is going to be reborn; he will decide where he wants to be reborn. How can the Chinese government dictate a lama, a spiritual being, where he or she should be reborn," Tsering had told PTI ahead of the 90th birthday celebration of the 14th Dalai Lama.
&w=3840&q=100)
Business Standard
25 minutes ago
- Business Standard
China opposes US plan to impose up to 50% tariffs on India: Ambassador
China fully opposes the US move of imposing tariffs of up to 50 per cent on India and Washington's threat to increase it, Chinese envoy Xu Feihong said here on Thursday. In his address at an event here, Feihong also said that tariff and trade "wars" were disrupting the global economic and trade system. The Chinese envoy's remark assumes significance as it comes amid a thaw in Sino-India ties. India and China on Tuesday unveiled a series of measures for a "stable, cooperative and forward-looking" relationship that included jointly maintaining peace along the frontier, reopening border trade, promoting investment flows, and resuming direct flight connectivity at the earliest. The announcements aimed at realising the "full" development potential of the two Asian giants came amid growing estrangement in ties between India and the US over President Donald Trump's policies on trade and tariffs. India and China listed the measures in a joint document after Chinese Foreign Minister Wang Yi held wide-ranging talks earlier this week with External Affairs Minister S Jaishankar and National Security Advisor Ajit Doval, besides meeting Prime Minister Narendra Modi. In his address at an event held at the IIC here, the Chinese envoy referred to the tariffs imposed on various countries by Washington. "The United States imposed tariffs of up to 50 per cent on India, and even threatened to impose more. China fully opposes it," he said. Speaking about the upcoming SCO Summit in China, Feihong said his country is willing to work with all parties, including India, to hold the summit, featuring friendship, solidarity, and fruitful outcomes. "Together, we can open a new chapter of a dragon-elephant tango," he asserted.
Time of India
25 minutes ago
- Time of India
TVS expands electric 3-wheeler portfolio; drives in model to cater to cargo segment
TVS Motor Company on Thursday expanded its electric commercial vehicle range with the introduction of a three-wheeler for the cargo segment. The company had forayed into the electric three-wheeler segment earlier this year with the launch of the King EV MAX to cater to the passenger segment. TVS King Kargo HD comes with a driving range of 156 km and is priced at Rs 3.85 lakh (ex-showroom). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mr. Gopal's Laxman Rekha Strategy: The Ultimate Guide to Winning Trades TradeWise Learn More Undo TVS Motor Company Head Commercial Mobility Business Rajat Gupta said the model would also be launched in CNG trim later this year. He noted that electric models are witnessing robust acceptance and the segment is likely to account for 60 per cent of the overall three-wheeler market by 2030. Live Events Gupta noted that EV models sold around 20,000 units last year, which is roughly 31 per cent of the overall 60,000-unit three-wheeler market. "As far as the cargo segment is concerned, around 10,000 units are getting sold each month, with diesel accounting for 50 per cent and EV and CNG accounting for 25 per cent each," Gupta said. He noted that the three-wheeler segment is witnessing a robust growth of 12 per cent year-on-year. "We expect by 2030, 60 per cent of the market will be EV. All the fuels will coexist, okay, but majorly, 50-60 per cent market will be EV," Gupta said. On TVS King Kargo HD, he noted that the company is entering Delhi-NCR first, followed by Bengaluru, Gujarat and Maharashtra. The domestic three-wheeler (cargo) segment stood at around 10,000 units, with diesel trims accounting for 50 per cent and the rest 25 per cent each of CNG and EV models, he said. When asked if the product would also be exported, Gupta stated that the overseas market for cargo three-wheelers remains small at around 4,000 units per annum. "Although it is very small, there will be adoption. So we are trying some of the countries already. We are running pilot vehicles in some of these places," he noted. Gupta noted that the company is in talks with various B2B players for leasing partnerships for the new product.
