The spectre of China is a potent reservoir for India’s protectionist anxieties to tap into
with China that runs over $55 billion – a gap it has tried to bridge through investments over the years.Since China’s mishandling of the Covid-19 outbreak and with the global economy in a tailspin, many governments – and India’s in particular – have become sceptical of economic dependence on Beijing.
“Modi has set ambitious plans for India to use the crisis and emerge as a key player in global manufacturing and supply chains post-COVID. Such a vision requires huge capital and forward-looking ideas. And sticking to the last vestiges of protectionism will not help,” he concluded. “Despite geographical proximity and the existence of bilateral and multilateral free trade agreements, South Asia is one of the least economically integrated regions in the world,” writes Riya Sinha and Niara Sareen.
Meanwhile China has consistently increased its exports to the region from $8 billion in 2005 to $52 billion in 2018, a 546 percent growth.
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