Four main priorities guide India’s approach to China, writes Sahib Singh Chadha, former senior research analyst at Carnegie India. Securing and managing the disputed border with China; protecting India’s economic interests by securing supply chains, reducing trade vulnerabilities, and attracting investment and technology. The third is building a new political understanding with Beijing after the breakdown in ties following the 2020 border crisis. The fourth is responding to a changing geopolitical environment, particularly shifts in U.S. foreign policy, while keeping channels of communication with China open.
Chadha argues that the recent improvement in India-China relations is driven by uncertainty over U.S. foreign policy under President Donald Trump and India’s economic dependence on China.
But border stability remains India’s biggest concern, he notes, with the external affairs minister warning that the wider relationship with China cannot improve unless there is peace and tranquillity along the border.
Economic interests rank second. India does not wish to decouple from China, only reduce vulnerabilities in key areas by divesifying. These range from electronic components, to pharmaceuticals and rare earth minerals. India is looking to attract Chinese investment and technology in selected sectors.
The report also says India is trying to build a new political understanding with Beijing after relations broke down in 2020. While high-level dialogue has resumed, Chadha argues that a deep trust deficit remains and rebuilding confidence between the two countries will take time.
On the geopolitical front, the report says India is keeping channels of communication open with China as the international environment becomes more uncertain, particularly because of changes in U.S. foreign policy.
Looking ahead, Chadha cautions that China still largely views India through the lens of its strategic rivalry with the United States and is suspicious of New Delhi’s growing ties with Washington, even though India has repeatedly said its foreign policy is independent.
