Akshat Srivastava, founder of Wisdom Hatch, in a post on X exposed the economic chasm between India and China with a stark comparison: while China’s trade surplus is a staggering $1 trillion (26% of India’s GDP), India struggles with $73.5 billion. trade deficit

“Both countries were net importers until the late 1980s. Today, China is building next-generation exports in robotics, semiconductors and AI. India? Our best hope seems to be to export smart people and rely on remittances,” he wrote.

The figures reflect a deep reliance on Chinese imports, particularly in critical sectors such as electronics, chemicals and renewable energy. Despite initiatives such as the Production Linked Incentives (PLI) scheme, launched in 2020 to strengthen domestic manufacturing, India’s dependence has only grown, raising questions about its global competitiveness.

Economists argue that India needs structural reforms to address this imbalance.

Deloitte India’s Rumki Majumdar advocates for increased investment in research and development: “India needs to improve its manufacturing competitiveness by moving up the value chain and incentivizing local production.”

With the Union Budget 2025 around the corner, experts are calling for decisive action. Expanding the PLI scheme to include more sectors, diversifying supply chains and encouraging foreign direct investment (FDI) are some of the strategies being discussed.

Gopal Jain, managing partner at Gaja Capital, recently called for a pragmatic approach: “India needs to welcome global investments and focus on building mutually beneficial business partnerships. This is crucial to reduce dependence and strengthen our economic resilience.”