Former Niti Aayog chief and G20 Sherpa Amitabh Kant on Thursday urged India and China to work together in joint ventures to drive economic growth. He said such a move would not only support the ‘Make in India’ initiative but also speed up ‘Manufacture in India’.

Responding to a question on how India should handle its complex economic relationship with China – the world’s second-largest economy and a major trading partner, Kant told ANI that India should focus on joint ventures instead of large-scale imports.

“We import goods worth around $120 billion from China. Despite having tense relations with Japan, China has maintained strong economic ties with it. Similarly, even though China shares a strained political relationship with Taiwan, Taiwanese investors and businesses remain among the largest contributors to China’s economy,” he told the news agency.

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Kant added, “It would benefit our economy if, instead of importing from China, we encouraged Chinese companies to enter joint ventures with Indian firms, holding only a minority stake, and carry out manufacturing within India.”

Vision for a USD 35 trillion economy

Speaking about India’s future growth, Kant noted, “The key is how do we take India from a $4 trillion to a $35 trillion economy by the time we become 100? That’s the vision of the Prime Minister. We need to provide momentum for growth. We need to grow at 8 to 9 per cent per annum, year after year. Instead of importing, we should focus on manufacturing in India with China. That will create jobs in India.”

Kant noted that both India and China had been affected by tariffs imposed by the United States. According to CNN, citing CNBC, the US and China recently agreed to pause tariff hikes on each other’s goods for 90 days, following an executive order signed by then-President Donald Trump. China confirmed the extension of trade talks and maintained its 10 per cent tariffs on American goods during this period.

US tariffs on India over Russian oil

Earlier, Trump had signed another Executive Order imposing an additional 25 per cent tariff on imports from India, citing national security, foreign policy concerns, and India’s imports of Russian oil as the reason. 

He described the imports as an “unusual and extraordinary threat” to the US. The Ministry of External Affairs (MEA) called the move “unfair, unjustified and unreasonable” and stated that New Delhi would take “all actions necessary to protect its national interests.”

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China backs India against US tariffs

China also criticised the US decision to impose tariffs on India. Chinese Foreign Ministry spokesperson Guo Jiakun described the action as an “abuse of tariffs” and said, “China’s opposition to the abuse of tariffs is consistent and clear. China opposes the US politicising tech and trade issues and using them as weapons to maliciously blockade and go after China. The US should earnestly protect the legitimate and lawful rights and interests of Chinese nationals.”