Escalating tensions could affect the economic relationship between India and China. India is considering imposing tariffs on Chinese goods, and it may restrict activities of Chinese corporates including foreign portfolio investors (FPIs). China may retaliate.
Both economies are struggling. In 2019-20, annual bilateral trade amounted to about Rs 7.3 trillion (approximately $102 billion), with India logging a deficit of Rs 3.70 trillion. That is, India exports about Rs 1.79 trillion and imports about Rs 5.5 trillion. In terms of Gross Domestic Product (GDP), China exports about 0.6 per ...
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