Why are India`s imports from China rising?
Why are India`s imports from China’s rising trade is booming, what is the state of other aspects of economic relations, including investments?
The story so far: While many countries, including India, have spoken of the need to reduce reliance on China particularly in the wake of COVID19 and disruption to supply chains, trade figures released last month showed imports have only continued to surge in 2021, rebounding after a fall in trade in 2020 because of the pandemic. The rising trade comes amid continuing tensions with China along the Line of Actual Control (LAC), where disengagement negotiations have been slow-moving. The rising trade does not, however, suggest a return to normalcy in relations. Other areas, such as investment, remain in a deep freeze amid the continuing chill in bilateral relations.