Navigating Sino-Indian Trade: A Call for Caution and Balance

Indian businesses are encouraged to approach dealings with China cautiously, avoiding over-reliance on Chinese supply chains. Progress has been made in resolving border issues, but further talks are needed. India's skewed trade ties with Russia also require attention to open up Russian markets for Indian exports.

On Thursday, External Affairs Minister S Jaishankar emphasized the need for Indian businesses to adopt a balanced approach when dealing with China, warning against excessive reliance on its supply chain. He noted the potential harms to India's national interest during his interaction at Assocham.

Jaishankar reported progress in resolving the friction points along the Line of Actual Control in eastern Ladakh, though further discussions are necessary. While acknowledging China's significant role in global manufacturing, he advocated for cautious engagement, especially for MSMEs, to prevent dependency issues.

Addressing broader trade concerns, Jaishankar expressed India's desire to enhance trade relationships with Russia by improving access to the Russian market. He highlighted the need to maneuver around existing barriers to boost exports in pharma, marine, and agro-products.

(With inputs from agencies.)