22 JUN,2020 | MEDC
This week’s unfortunate incident in the Galwan valley in Ladakh has hit Sino-Indian relations. However, economic and border issues need to be separated, and China has now made itself almost indispensable. Raising trade barriers indiscriminately may end up becoming counterproductive. Most Chinese products are available cheaply only because they are made and sold competitively, and it is worth learning from that country how this remarkable strategy of theirs could be sustained for so long. Simultaneously, India should gradually reduce its economic dependence on China, and for that most protective import duties need to be phased out in a pre-planned manner. Tariffs could be linked to export targets, incentivizing domestic firms to improve their performance. Economic engagement with China is inevitable and can even be made mutually beneficial, but India needs to enhance its negotiating power. The first step to self-reliance is strengthening our economy to the extent wherein it dictates the terms of partnership to its neighbours.
*Photo Credit: Google