On the sidelines of the summit, Xi and Modi once again
reaffirmed the importance of long-term cooperation, especially with world trade
being reshaped by volatile US tariff policies. But you wouldn't be blamed
for skepticism here, analysts told Nikkei Asia.
India's trade deficit with China has ballooned over the
years, and its dependence on imports from its neighbor in sectors ranging from
electronics to electric vehicles remains stark. But for Chinese companies
seeking new growth markets amid mounting domestic overcapacity, India's large
and growing market is unmatched.
India wants to move up global value chains, but China's
interests are best served if India's import dependence remains where it is.
China's restrictions on equipment exports, tech transfers and even business
visas have affected Indian manufacturers as the country pushes for
self-reliance in critical new-age sectors.
These thorny issues will remain the subject of debate,
especially at India's Semicon event beginning on Thursday. This year's
three-day conference comes only weeks after India initiated its second
semiconductor mission, which places a far bigger emphasis on chip design. In
the first mission, 12 projects were approved, including India's first fab,
being set up by the Tata group.
