Despite the high-profile 'Make in India' initiative launched in 2014, India's manufacturing sector has become even more dependent on Chinese imports for critical components and technology. The sector's contribution to GDP has fallen, directly contradicting the program's primary objective of industrial self-reliance and growth.
China has established comprehensive control over the entire value chain for key future industries, particularly batteries and electronics. This dominance extends from raw material processing (lithium, rare earths) to sophisticated manufacturing equipment and, most importantly, the intellectual property and operational expertise.
A deep strategic mistrust between New Delhi and Beijing leads to restrictive policies, including the rejection of major Chinese investments (e.g., BYD) and severe visa limitations. However, Indian corporations find Chinese technology and equipment indispensable due to cost and scale, forcing them into clandestine workarounds like meeting in third countries.
The core challenge for India is not just acquiring physical machinery but gaining the operational know-how to use it effectively. China is actively restricting the transfer of its most advanced technology, while alternatives from partners like South Korea are 20-25% more expensive and potentially less suitable for India's specific conditions.
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