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Most other countries at this level of economic development have rates below 10%. Coal imports into China fell around 10% year on year even as domestic production barely inched up. LNG imports declined by low double digit percentages, roughly 10% to 15% depending on the data source, despite years of projections that gas would surge as a bridge fuel. Crude oil imports grew modestly, but that growth was increasingly disconnected from transport fuel demand and tied more closely to petrochemicals and exports.
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India has also been one of the benefactors of “friendshoring” efforts begun under the Joe Biden administration, which sought to shift global supply chains away from rivals and toward partners. The 2022 CHIPS and Science Act created a $500 million fund to invest in India’s semiconductor industry, but the benefits of friendshoring for both countries will take time to materialize, experts say. China and India also separately possess strong military and economic ties with Russia, even after its 2022 invasion of Ukraine. India deters Chinese aggression by responding to Beijing’s provocations and strengthening its relationships with other countries also wary of China’s growing military strength. New Delhi has boosted its defenses along its shared border with Beijing, committing $24 million to upgrade its airfield in the disputed areas in 2023. As part of its multi-alignment strategy, India has developed strategic partnerships with more than thirty countries, including a “special and privileged strategic partnership” with Russia.
This can be done under strict government oversight to manage security risks. Success of ‘Aatmanirbhar Bharat’ depends on making Indian industries globally competitive, not on protectionism. This requires improving the ease of doing business, ensuring access to affordable capital, and investing heavily in R&D and skill development. Collaborating with partners through forums like the Quad, EU and the Indo-Pacific Economic Framework (IPEF) to build alternative, resilient supply chains with trusted partners like Japan, Taiwan, and South Korea. With the US and Europe increasingly restricting Chinese-linked clean-energy technologies, countries such as India now have stronger incentives to invest in local manufacturing.
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