Anger over the death of Indian soldiers in the Galwan Valley has translated into calls for cutting all ties with China. But if any move is made in that direction, India stands to lose much more than China.
The East Asian nation ranks second in the list of India’s top trade partners. “Trade relations between the two countries have grown rapidly since the early 2000s, from under $2 billion in the year 2000 to $38 billion in 2008, when China became India’s largest trading partner—a position it still held in 2018, by when bilateral trade had increased 2.5 times to $95.5 billion,” noted Ananth Krishnan, a former Brookings India fellow in his report in March.
However, the trade ties aren’t evenly balanced. India buys more from China than it sells, leading to a huge trade deficit.