InvestorQ : In the current Indo-China stand-off who is depending more on the other country economically?
Mitali Bhutta made post

In the current Indo-China stand-off who is depending more on the other country economically?

Answer
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Dawn Cherian answered.
3 months ago


In the midst of the stand-off at Galwan, it must be remembered that both India and China are economically dependent on each other. China surely needs India. India runs a $70 billion trade deficit with China and is one of the drivers of the overall trade surplus of China. China needs Indian trade to grow. Also, India offers a ready and lucrative consumer market.

Having said that, India needs China too as China is an important link in its supply chain. Sectors like electronics, pharma and automobiles rely heavily on China for supply of raw materials. Over 70% of India’s supply of pharma APIs are from China. Today, there are very few countries having the capacity to match the heft and scale of China.