Economic Survey warns of risks in overdependence on China

News: The Economic Survey warns of India’s “single-source concentration risk,” particularly from China, which poses supply chain, price, and currency risks.

Despite its growing industrial base, India’s manufacturing sector remains underdeveloped, contributing only 2.8% of global output compared to China’s 28.8%.

Dependence on Chinese goods for energy transition adds to the challenge. The Survey calls for aggressive efforts to attract local and foreign investments. GTRI’s Ajay Srivastava highlights China’s overcapacity-driven exports disrupting global markets, urging regulatory reforms to support MSMEs.

India must sustain 8% growth for two decades to achieve developed nation status by 2047 but faces hurdles from China’s dominance in EVs, critical minerals, and clean energy.