'We should get the Chinese to do joint ventures with Indian companies,' says Amitabh Kant amid Trump tariffs
financialexpress.com -- Friday, August 15, 2025, 12:59:52 AM Eastern Daylight Time
Categories: U.S.–China Relations, Economic Policy & Jobs, Trade Policy & Tariffs
Kant noted that both India and China had been affected by tariffs imposed by the United States.
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.
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."
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."
Sign Our PetitionThe recent remarks by Amitabh Kant, former chief of the Niti Aayog, underscore a potential shift in India’s economic strategy amidst escalating trade tensions with the United States. By advocating for joint ventures between Indian and Chinese companies, Kant is not merely proposing a pragmatic approach to economic growth but is also placing India in the context of a global economic landscape reshaped by protectionist policies. This commentary will explore the historical and socio-political implications of Kant's statement, connecting it to broader economic struggles and the ongoing quest for self-sufficiency in manufacturing.
Historically, India’s relationship with China has been complex and often fraught with geopolitical tensions, particularly following their border conflicts in 1962. Despite these challenges, both nations have recognized the necessity of forging economic partnerships to bolster their respective economies. Kant’s suggestion to foster joint ventures instead of relying on imports reflects a strategic pivot, reminiscent of earlier post-colonial economic policies that sought to reduce dependency on Western powers. In this light, the push for "Make in India" dovetails with a historical narrative of economic self-determination, a vital principle for developing countries that have long struggled against the imperial shadows of foreign economic domination.
The context of the U.S. tariffs, particularly those imposed under the Trump administration, further complicates this scenario. The tariffs were framed as measures to protect U.S. national security and economic interests; however, they can also be viewed through the lens of economic imperialism, where powerful nations manipulate trade policies to maintain dominance. Kant’s assertion that India and China should collaborate stands as a challenge to this narrative, promoting a view that seeks to sidestep the adversarial economic policies of the U.S. and advocate for regional cooperation. Such collaboration could foster not only economic resilience but also a collective bargaining power against unilateral trade measures that disproportionately affect developing economies.
Moreover, the emphasis on manufacturing aligns with ongoing social struggles within India. The country faces a daunting unemployment crisis, particularly among its youth. By prioritizing manufacturing through joint ventures, India can potentially create millions of jobs, alleviating poverty and addressing social inequalities. This focus on manufacturing also resonates with the historical context of labor rights movements, where the demand for jobs and fair working conditions has often been at the forefront of political discourse. As India navigates its economic future, it must ensure that the growth fostered through these joint ventures translates into equitable opportunities for all citizens, particularly marginalized communities that have historically been excluded from economic advancements.
In addition to economic and social considerations, Kant’s remarks prompt a reevaluation of India’s diplomatic posture in the global arena. The critique of U.S. tariffs by the Chinese government, as noted in the article, highlights a commonality in the experiences of nations facing external economic pressures. This shared challenge could lead to a more unified front among developing nations, advocating for fair trade practices and a multipolar world order that prioritizes economic equity over protectionist tendencies. By positioning itself alongside China, India may not only enhance its economic prospects but also reclaim its agency in an international system that has often marginalized its voice.
In conclusion, Amitabh Kant's call for joint ventures between India and China represents a multifaceted opportunity for economic growth, social equity, and diplomatic reorientation. It invites a historical reflection on the legacies of colonialism and trade imperialism while simultaneously addressing contemporary challenges such as unemployment and economic inequality. As India seeks to elevate its economy in an increasingly competitive global landscape, the integration of collaborative economic strategies could serve as a vital means of fostering resilience, empowerment, and justice within its socio-economic fabric.
The complex interplay of global trade relationships, especially between the United States, India, and China, has entered a critical phase marked by tariffs and economic strategies that can shape the future of these nations. Amitabh Kant's call for India and China to engage in joint ventures reflects a pragmatic approach to navigating the tumultuous waters of international trade, particularly in light of tariffs imposed by the United States. The historical backdrop of trade relationships speaks volumes about the potential benefits and pitfalls of such collaborations. Since the mid-20th century, countries across Asia have grappled with the need to balance economic growth with political tensions. In an era where global interdependence is both a reality and a necessity, finding common ground through joint ventures could foster sustainable economic development, mitigate reliance on imports, and create jobs in India.
Kant's assertion that joint ventures could support the "Make in India" initiative highlights the need for India to shift its focus from being a consumer to becoming a manufacturing powerhouse. This perspective is not just about economic growth; it is about empowering local industries and reducing dependency on foreign imports. The historical context here is crucial; post-colonial India embarked on a journey of self-sufficiency, often in opposition to Western hegemony. However, the recent trend of global trade wars and tariff impositions threatens to undermine this vision. By fostering partnerships with Chinese companies, India can leverage existing manufacturing capabilities while ensuring that profits and jobs remain within its borders. Such collaborations could strengthen India's position in the global market and create a more equitable distribution of resources.
The tariffs imposed by the United States have had a ripple effect, impacting both India and China. Kant's insights reflect a growing recognition of the need for countries to adapt and innovate in response to external pressures. The juxtaposition of India's strained relationship with China against a backdrop of potential economic collaboration is intriguing. It challenges the narrative that adversarial politics must dictate economic interactions. History has shown that economic ties can often transcend political disagreements—an example being the relationship between Japan and China, which has endured despite historical grievances. By focusing on joint ventures, India can not only reduce its trade deficit with China but also build resilience against unilateral actions from the US or any other major economy.
As American citizens concerned about the ramifications of global trade policies, there are several actions we can take to support equitable international relations and encourage sustainable economic practices. First and foremost, education is key. Understanding the intricacies of trade relationships, tariffs, and their implications can empower individuals to advocate for policies that prioritize fair trade and international collaboration. Engaging with local communities, businesses, and policymakers to foster discussions on the importance of global cooperation can create a groundswell of support for initiatives that seek to bridge divides rather than exacerbate them.
Furthermore, supporting companies that engage in ethical manufacturing practices and prioritize local economies is essential. By choosing to patronize businesses that are committed to fair labor practices and sustainable sourcing, consumers can influence corporate behavior and encourage a shift towards more responsible global trade. Mobilizing through social media and community networks to raise awareness about the importance of joint ventures and collaborative economic policies can create a more informed citizenry that demands accountability from both local and national leaders. Ultimately, fostering a culture of cooperation over competition in international trade is not just a political imperative; it is a path toward building a more equitable and sustainable global economy.
Analyzing the article from a critical perspective, we can draw several actionable ideas that individuals can pursue to support economic collaboration between India and China, particularly in the context of joint ventures and manufacturing initiatives. Here’s a detailed list of potential actions:
### What Can We Personally Do About This?
1. **Advocate for Joint Ventures**: - Engage in discussions about the benefits of joint ventures between Indian and Chinese companies, emphasizing mutual growth, job creation, and technology transfer.
2. **Support Local Manufacturing Initiatives**: - Promote local manufacturing through awareness campaigns, highlighting the importance of self-reliance and job creation in your community.
3. **Engage with Policymakers**: - Write letters or emails to local and national representatives advocating for policies that support collaboration with China rather than isolation.
4. **Participate in Economic Forums**: - Attend forums or webinars that discuss international trade, manufacturing, and economic collaboration, and express support for joint ventures.
5. **Educate Others**: - Share articles, studies, and success stories on social media or community groups about the positive impacts of international partnerships.
### Exact Actions We Can Take
1. **Petitions**: - Start or sign a petition advocating for the government to explore joint ventures with Chinese companies. Websites like Change.org can be used for this purpose.
2. **Contacting Policymakers**: - Write to key policymakers who influence trade and economic policies. Here are some suggestions:
- **Minister of Commerce and Industry - Piyush Goyal** Email: piyush.goyal@nic.in Address: Udyog Bhawan, New Delhi, Delhi 110001, India
- **Minister of External Affairs - S. Jaishankar** Email: externalaffairs@nic.in Address: South Block, Raisina Hill, New Delhi, Delhi 110001, India
- **Prime Minister - Narendra Modi** Email: contact@pmindia.gov.in Address: South Block, Raisina Hill, New Delhi, Delhi 110004, India
3. **What to Say**: - In your correspondence, you might want to express the following points: - Highlight the benefits of economic collaboration with China, focusing on job creation and technology sharing. - Urge policymakers to consider joint ventures as a viable alternative to imports. - Advocate for policies that encourage foreign investment in Indian manufacturing projects, particularly involving Chinese companies. - Emphasize the importance of maintaining strong economic ties, even amidst political tensions, as a pathway to sustainable growth.
4. **Community Initiatives**: - Organize or participate in community events that discuss economic cooperation. Consider hosting discussions or inviting speakers who understand international relations and trade dynamics.
5. **Social Media Campaigns**: - Create a hashtag campaign to raise awareness about the potential benefits of India-China joint ventures. Encourage community members to share their thoughts and engage in discussions online.
6. **Support Local Startups**: - Invest in or support local startups that are looking to collaborate internationally. This could also include attending pitch events or networking sessions.
7. **Educational Outreach**: - Collaborate with educational institutions to organize talks or workshops about the importance of global trade and economic partnerships.
By actively engaging in these actions, individuals can foster a climate of cooperation and mutual growth, contributing to a more robust economic future for India.