India is seeking to boost its industrial growth, hoping to follow in the footsteps of China, the world's second-largest economy. According to a report published by the Financial Times, India, the most populous country in the world, has not benefitted from the export-led economic growth that its Chinese neighbor has enjoyed over the past three decades. However, the report indicated that India is determined to catch up and compete with its neighbor, but on its own terms.
India is working on developing various automotive industries, including internal combustion engine vehicles and electric vehicles. Electric cars are one of the significant industrial sectors in India, alongside advanced battery manufacturing and microchips, which the government under Prime Minister Narendra Modi has allocated billions of dollars for through "production-linked incentives."
Conversely, the Indian government has imposed restrictions on Chinese investments within the country. The Financial Times report noted that despite Modi's government's efforts to limit the flow of Chinese investments and visitors, Indian companies remain heavily reliant on Chinese imports. For instance, the electric vehicles produced by Mahindra, one of India's largest electric vehicle manufacturers, use Chinese batteries, despite the country's local battery manufacturing capabilities.
Chinese goods dominate other industries in India as well, from solar panels to active pharmaceutical ingredients used in drug manufacturing. In the last fiscal year, India's imports from China reached a record high of $101.7 billion, an increase of 66 percent compared to the same period seven years ago. China has now surpassed the United States as the country's top trading partner.
