It is clear that there is increasing trade deficit between the countries which has only accelerated post Covid.
- China’s dominance in low cost manufacturing.
- China is well integrated in the global supply chain.
- India’s poor manufacturing capacity underpinned by lack of reforms in Land, labor and capital utilisation.
- The recent COVID issue has permanently damaged many MSME’s in India, making it difficult for the manufacturing companies to source intermediate products.
- To protect domestic players from cheap imports, India has imposed anti-dumping duty on as many as 99 Chinese products including Chemicals, petrochemicals, fibre, yarn, pharmaceutical, rubber etc.