Q. The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance. Explain this statement with examples.

Core Demand of the Question

●        Discuss how West is fostering India as an alternative to reduce dependence on China’s supply chain

●        Discuss how West is fostering India as a strategic ally to counter China’s political and economic dominance

 

Answer

In an ongoing polarisation around the world and amidst rising geopolitical tensions, the West is increasingly seeking to reduce its dependence on China’s supply chain. India is emerging as a key alternative, supported by its economic potential, strategic location, efficient human resource power and growing global influence. Recent initiatives such as the Indo-Pacific Economic Framework (IPEF) underscore this shift.

 

Ways in which the West is Fostering India as an Alternative to Reduce Dependence on China’s Supply Chain

  • Supply Chain Diversification: The West is encouraging India’s manufacturing sector to replace China in global supply chains by increasing investments in India.
    For example: Apple’s decision to manufacture iPhones in India is a significant step toward reducing dependence on Chinese factories.
  • Strategic Trade Agreements: By establishing trade and technology councils, the West is promoting closer trade ties with India, facilitating collaboration in technology and trade to make India a global manufacturing hub.
    For example: The India-EU Trade and Technology Council (TTC) aims to enhance technological collaboration, driving investment in India’s growing industrial sectors.
  • Resilient Supply Chains: Western countries are working with India through multilateral initiatives like the Quad to establish resilient and diversified supply chains.
  • Infrastructure Development: The West is investing in Indian infrastructure to support enhanced production and logistics capabilities, making India more reliable as a manufacturing base.
    For example: The Build Back Better World (B3W) initiative, led by the US, aims to improve infrastructure, offering an alternative to China’s Belt and Road Initiative (BRI).
  • Technological Collaboration: India’s growing technological prowess is being supported by Western nations to build capabilities in semiconductors, telecommunications, and emerging technologies, thereby reducing dependency on Chinese tech supply chains.
    For example: The US-India Initiative on Critical and Emerging Technology (iCET) seeks to develop India’s semiconductor production, providing a key alternative to China.

Ways in which the West is Fostering India as a Strategic Ally to Counter China’s Political and Economic Dominance

Political Dominance:

  • Indo-Pacific Strategy: The West is building India’s role in the Indo-Pacific region as part of efforts to counter China’s growing influence by ensuring a free and open sea-lane for trade and military cooperation.
    For example: The Quad naval exercises, such as Malabar, showcase the growing military cooperation between India, the US, Japan, and Australia to secure the Indo-Pacific against Chinese expansion.
  • Defence Cooperation: The West is enhancing defence partnerships with India to balance China’s assertiveness.
    For example: The US-India Defense Technology and Trade Initiative (DTTI) fosters defence technology cooperation, strengthening India’s military capabilities.
  • Diplomatic Engagement: India is viewed as a key partner in multilateral forums where the West seeks to counter China’s influence in global governance, emphasising India’s role in diplomacy and geopolitical stability.
    For example: India’s presidency of the G20 in 2023 provided a platform to strengthen its role in global governance.
  • Space Cooperation: The West is collaborating with India to develop its space capabilities, which can serve as a counterbalance to China’s growing dominance in space exploration and satellite technology.
  • For example: NISAR, a joint Earth-observation mission by NASA and ISRO, exemplifies the strengthening space collaboration between India and the U.S.

 

Economic Dominance:

  • Trade Diversification: The West is increasingly focused on diversifying trade away from China, turning to India as a reliable partner for sourcing goods, services, and investments.
    For example: US-India bilateral trade reached a record $128 billion in 2023, signalling the West’s growing economic engagement with India to reduce reliance on China.
  • Investment in Technology: The West is fostering India’s role as a leader in emerging technologies like AI, 5G, and clean energy, positioning it as a key partner in reducing China’s dominance in high-tech industries.
  • Collaboration in Energy: Through investments, the West is helping India reduce its reliance on China for solar panels and batteries, particularly in the context of growing climate change concerns.
    For example: India’s participation in the International Solar Alliance (ISA) positions it as a global leader in renewable energy.
  • Multilateral Trade Engagement: India’s involvement in Western-backed multilateral trade agreements is a strategic move to foster partnerships that promote open and fair trade.
    For example: India’s engagement in the Indo-Pacific Economic Framework (IPEF) strengthens its role in global trade agreements that challenge China’s economic dominance.

The West’s focus on fostering India as an alternative to China in both supply chains and strategic alliances is crucial for rebalancing global power dynamics. As former US President Barack Obama once said, “India is not just a rising power; India is a responsible global power,” signalling a shared vision for a more stable, multipolar world.

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