Datanomics: Diplomatic thaw expected to bolster India-China ties

Chinese foreign minister Wang Yi recently interacted with his Indian counterpart S. Jaishankar to bolster the Indo-China bonhomie, in the wake of the recent turbulence in the India-US relations

Chinese Foreign Minister Wang Yi recently interacted with his Indian counterpart S Jaishankar to bolster the Indo-China bonhomie, in the wake of the recent turbulence in the India-United States (US) relations. Discussions revolved around  trade, especially focusing on easing exports of fertilisers, rare earth minerals (REMs), and tunnel boring machines to India, besides facilitating movement of people and investments, which  took a hit post Galwan clashes in 2020.  China’s share in India’s fertiliser imports drops  The Chinese share in Indian imports of fertilisers dropped from 27.16 per cent in FY20 to 10.51 per cent in FY25. In value terms, India imported around 29 per cent of its REMs from China in FY25. However, in volume terms, India imported nearly 59 per cent of REMs.  

 

         

Dip in India’s FDI from China 

   

India received foreign direct investment (FDI) equity flows from China worth $2.67 million in FY25, which was 0.01 per cent of the total FDI equity receipts by India in FY25. Chinese investment was $163.78 million in FY20, before the Galwan clash, with a share of 0.33 in the total FDI inflows received that year. 

 

       

    

Sharp decline in Chinese nationals coming to India

 

  As many as 339,442 Chinese nationals visited India in 2019, while 358,685 Indians went to China in the same year. These declined to just 30,585 Chinese coming to India in 2023, while 157,090 Indians visited China in 2023, after visa restrictions were imposed by the two countries. 

  Source: Ministry of Tourism