The Economic Times

Behind the Modi-Xi border thaw, India's dependence on Chinese imports, especially rare earths, keeps deepening

India faces a significant trade deficit with China, importing substantially more goods than it exports. Chinese firms offer superior price and tech competitiveness, impacting Indian industries. India relies heavily on China for critical inputs like rare earths, affecting various sectors. The nation is pursuing diversification and domestic manufacturing incentives to reduce dependency. Targeted measures and tech transfer are crucial for a sustainable bilateral relationship.