According to recent data, trade between India and China has crossed the $100 billion threshold. Imports outnumber exports by a large margin, demonstrating India’s overdependence on Chinese products such as chemicals, vehicles, and electronics.

Strategic and Financial Ramifications:

 Disruptions in the supply chain

 Any internal concerns in China have the potential to disrupt supply chains. India’s dependent sectors will be in full turmoil.

Artificial Scarcity

 As part of an economic war, source countries can create fake shortages. This will stifle economic growth, and the situation may deteriorate.

Increased Trade Deficit

 To pay for Chinese imports, the destination country, in this case India, will have to use its foreign reserves. In the long run, this is ineffective.

The role of the PLI scheme in resolving the issue Production in the area

Because the product would be made locally, it will be easier to manage production based on demand and supply.


 Because transportation costs will be eliminated, the cost of the product will be greatly reduced. As a result of the easy availability, the final product will be less expensive.

Continual supply

 There will be no danger of a sudden cessation, and supply will be consistent. Additionally, exporting can generate revenue.

As a result, over-reliance on adversaries like China is hazardous to our national security. Self- sufficiency will be the key to our further progress.

Legacy Editor Changed status to publish June 27, 2023