TFIGlobal
TFIGlobal
TFIPOST English
TFIPOST हिन्दी
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
No Result
View All Result
TFIGlobal
TFIGlobal
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

To Uncle Sam’s Dismay, India and China are burying the Hatchet.

Atul Kumar Mishra by Atul Kumar Mishra
July 29, 2024
in Geopolitics
To Uncle Sam’s Dismay, India and China are burying the Hatchet.
Share on FacebookShare on X

India’s Finance Minister Nirmala Sitharaman on July 25 supported her economic advisor’s recommendation to permit direct investment from China, which has been largely restricted since the 2020 border conflicts between the two countries.

Earlier this week, Reuters reported that India’s Chief Economic Adviser V Anantha Nageswaran stated that to enhance its global exports, New Delhi has two primary options: integrating into China’s supply chain or encouraging foreign direct investment (FDI) from China. Nageswaran noted, “Among these choices, focusing on FDI from China seems more promising for boosting India’s exports to the US, similar to how East Asian economies did in the past.”

Also Read

India wants Peace, Pakistan wants terrorism: Indian PM Modi talks Pakistan and China on Lex Fridman’s Podcast

India’s $4bn boost to Russia’s defence industry

Why India is Saying ‘No Thanks’ to Following NATO and Participating in War Crimes

This proposed policy shift towards China comes in the wake of Russian President Vladimir Putin’s recent visit to New Delhi. Asia Times’ Global Risk-Reward Monitor newsletter reported on July 11 that during the visit, Prime Minister Modi requested Putin’s assistance in resolving India’s longstanding border dispute with China. This conflict, although limited, is significant as it involves the two largest countries in the region. Russian mediation, even if informal, could lead to a diplomatic transformation and undermine American efforts to rally Asian countries against China.

The dynamics in Asia are further influenced by demographic trends, with the declining population in non-Muslim regions and the increasing Muslim populations potentially driving India, Russia, and China towards strategic cooperation. The ongoing Ukraine conflict has also contributed to a closer relationship between these nations. India’s increased purchase of discounted Russian oil, which surged from $8.7 billion in 2022 to $67 billion in 2023, highlights this growing economic interdependence. Moreover, India re-sells Russian oil and its derivatives to other countries.

Despite the border tensions, India has refrained from joining the US and its allies in criticizing China’s treatment of its Uyghur Muslim population. Conversely, the US frequently accuses India of human rights abuses against its Muslim minority. In 2022, US Secretary of State Anthony Blinken stated, “We regularly engage with our Indian partners on these shared values (of human rights) and, to that end, we are monitoring some recent concerning developments in India including a rise in human rights abuses by some government, police, and prison officials.” India’s Foreign Minister S Jaishankar responded that India could similarly highlight human rights issues in the United States.

The burgeoning trade between China and the Global South, including India, has improved the prospects for reconciliation between the world’s two largest countries. India is open to integrating Chinese supply chains to bolster its export industry. Like other Chinese trading partners such as Mexico, Vietnam, and Indonesia, India imports components and capital goods from China and assembles finished products for developed markets.

Since the onset of the Covid pandemic, India’s imports from China have more than doubled, as China’s export focus shifted from the US and Europe to the Global South. Correspondingly, India’s exports to the US have increased, as Nageswaran highlighted.

A 2022 World Bank report estimated that India will need to invest $840 billion over the next 15 years—averaging $55 billion annually—into urban infrastructure to meet the demands of its rapidly growing urban population. Currently, the government spends only $16 billion per year on urban infrastructure. Thus, a partnership with China could significantly enhance India’s infrastructural development.

The Modi government is also considering closer ties with China for reasons beyond economic gains. The US’s chaotic withdrawal from Afghanistan has left a destabilizing influence in Central Asia. The American intervention aimed to dismantle the Taliban but ended up reinstating its power, potentially fostering Islamist radicalism in neighboring countries, including China, Pakistan, Turkmenistan, and Uzbekistan. For China, Russia, and India, this situation poses a strategic challenge. All three nations have significant Muslim minorities and share an interest in stabilizing these populations. China, with its substantial resources, is uniquely positioned to contribute to this stabilization through economic development.

China’s expanding economic presence in Central Asia, marked by tripled exports to the region and Turkey over the past four years, reflects its efforts to address the instability left by the US in the wake of Afghanistan’s collapse. China is investing in infrastructure such as railways, roads, and broadband, which can help mitigate potential future sources of instability.

India’s internal challenges include unrest in its 14% Muslim population. Collaborative efforts with China and Russia could address these challenges, fostering stability and economic development across Asia.

Tags: border conflictFDI from ChinaGeopolitical StrategyGlobal TradeHuman rights issuesIndia economic policyIndia-China relationsinfrastructure investmentNirmala SitharamanRussia-India Relations
ShareTweetSend
Atul Kumar Mishra

Atul Kumar Mishra

Lovable Narcissist | Whiskey Lover | Dharma Warrior | Founder, The Frustrated Indian | CEO, tfipost.com

Also Read

Israel Approves 22 New Settlements in West Bank

Israel Approves 22 New Settlements in West Bank Amid International Concerns

May 30, 2025
Vucic betrays Putin? Russian agencies find Serbia firms providing ammunition to Ukraine

Vucic betrays Putin? Russian agencies find Serbia firms providing ammunition to Ukraine

May 30, 2025
How Turkey Undermines the Alliances It Claims to Support

Is Turkey Playing Both Sides—or Playing Everyone?

May 30, 2025
Russian deputy mayor and war hero Zaur Gurtsiev assassinated in blast, Ukraine hand suspected

Russian deputy mayor and war hero Zaur Gurtsiev assassinated in blast, Ukraine hand suspected

May 30, 2025
UK pushes military presence in the Arctic provokes Russia

UK pushes military presence in the Arctic provokes Russia

May 29, 2025
Germany to deploy 40,000 soldiers near Russia’s borders, NATO prepares its flanks

Germany to deploy 40,000 soldiers near Russia’s borders, NATO prepares its flanks

May 29, 2025
Youtube Twitter Facebook
TFIGlobalTFIGlobal
Right Arm. Round the World. FAST.
  • About Us
  • Contact Us
  • TFIPOST – English
  • TFIPOST हिन्दी
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy

©2025 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIPOST English
TFIPOST हिन्दी

©2025 - TFI MEDIA PRIVATE LIMITED

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.