India new Friend Xi Jinping ? China dominates global manufacturing (35% vs India’s 3%).

The U.S. has imposed steep tariffs on Indian goods, creating pressure on exports. To counter this, India is exploring stronger ties with China. At the recent SCO summit, PM Modi and President Xi called India and China “partners, not rivals,” reopening flights, easing visas, and lifting some trade curbs. This cooperation can lower input costs for Indian industries and diversify supply chains, reducing the impact of U.S. tariffs. Still, India runs a $99 billion trade deficit with China, importing $113.5 billion against just $14.3 billion exports. Yet, studies show a $161 billion untapped export potential in areas like pharmaceuticals, IT, and chemicals. If tapped strategically, India could rebalance trade and boost competitiveness. However, challenges remain: China dominates global manufacturing (35% vs India’s 3%), and geopolitical mistrust persists. Thus, India’s path lies in selective cooperation expanding exports to China while keeping multi-alignment with the U.S. and others. Disclaimer: This is for educational purposes only. Investment in securities is subject to market risk