Trade conundrum with China: Cautious steps need of the hour, say experts

Over the last few years, India's exports to China have been contracting but imports have been on the rise

Chinese restrictions on supplies of rare-earth minerals and fertilisers and the country calling back specialised technicians from India have put policymakers in New Delhi in a tough spot, according to sources. 

 

Experts say the way out has to be a balanced approach because India cannot afford a retaliatory move, considering its dependence on the neighbouring country for inputs.

 

They are of the view that China’s recent actions may be to warn India because of the way tensions are deepening over trade and geopolitical alignments.

 

A case in point is Foxconn Technology Group sending hundreds of its Chinese engineers and technicians