The Xi Jinping administration has imposed restrictions on the export of critical goods and machinery to India. According to the Think tank GTRI, India needs to reduce its dependence on China and strengthen partnerships with countries like Japan and South Korea.
The move by China to halt the supply of critical goods to India could significantly impact the country's economy and production processes. In several sectors, China is a key supplier, and such actions could lead to increased production costs. This may also result in a rise in inflation in the domestic market.
Will Russia Be Able to Provide Help to India?
Russia, India's most trusted ally, may not be able to offer substantial assistance in this matter. The growing ties between Russia and China could hinder the Putin administration from providing unconditional support to India.
Additionally, Russia's current global circumstances do not allow it to extend the level of support India might expect. The ongoing Ukraine war and the sanctions imposed by Western countries have affected Russia's economy, limiting its global trade capabilities.
India Needs To Strengthen its Partnerships with Japan
According to think tank GTRI, India needs to strengthen its partnerships with Japan and South Korea to reduce its dependence on China. India should procure high-quality components for electronics, solar panels, and EVs from these countries.
GTRI founder Ajay Srivastava said, "This signals deep geopolitical tensions and a trade war. We hope the India-specific restrictions will soon be lifted, as they will also harm China." There is no doubt that the strategy of China will hamper India's electronics, solar, and EV sectors.
However, it also impacts China's own manufacturing and exports. Indian companies are facing delays and disruptions in the supply of goods as China is halting the export of components and machinery. By strengthening partnerships with countries like Japan and South Korea, India can fortify its position.
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