India’s Strategy for Balanced Trade with China: Minister Jaishankar’s Insights

India’s External Affairs Minister, S. Jaishankar, recently said that India should handle its business with China carefully. This is important because of the challenging political relationship between the two countries over the last four years. Jaishankar mentioned that while India can still do business with China, it should not rely too much on them for supplies.

He pointed out that there’s been some progress in easing tensions along the border, but much more needs to be discussed. “We don’t want to just be a market for another country and get flooded with their cheaper goods,” he stated, stressing the importance for small businesses in India, known as MSMEs, to stay competitive.

India must also remember that China is a major player in global manufacturing. However, Jaishankar warned against depending too much on a single country for supplies, which could hurt various sectors in India.

Additionally, Jaishankar talked about the ongoing issues in the political relationship with China. He noted that the situation has improved slightly and discussions on future cooperation are necessary. The military standoff that began in 2020 affected the ties between the two nations. After negotiations led to a deal on disengagement, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met to discuss ways to normalize relations.

Jaishankar also expressed that India is in a strong position to work closely with the new US administration under Donald Trump. He believes India can build an even better relationship, focusing on mutual interests.

He mentioned the challenges in India’s trade with Russia, stressing that India needs better access to Russian markets, especially for exports like pharmaceuticals and agricultural products. Although trade with Russia has increased significantly, India is pushing for its exports to be valued more fairly.