India is placing greater emphasis on manufacturing development and stronger industrial capabilities, with expanded economic engagement with China emerging as one potential avenue for strengthening supply chains and supporting industrial growth.
India’s manufacturing ambitions include developing more complete value chains covering components, design, production and finished goods. This approach is creating greater focus on access to industrial inputs, technology, skills and manufacturing expertise.
Trade between India and China reached $155.6 billion in 2025, while India’s exports to China increased 9.7% year on year. China’s large consumer market also provides opportunities for Indian producers seeking to expand exports and increase production capacity.
Imports from China form another important part of the manufacturing ecosystem. Raw materials, components and industrial equipment supplied through bilateral trade can support Indian manufacturers as they expand production and develop domestic capabilities.
Modern industries such as automotive and new energy manufacturing depend on extensive networks of suppliers. Vehicles can require thousands of components, demonstrating how materials, precision parts, equipment and specialized manufacturing processes work together across interconnected supply chains.
Greater trade, investment and industrial cooperation could further connect Indian manufacturers with regional production networks while supporting the development of local capabilities. Strengthening these connections could also help businesses improve efficiency, scale production and participate more deeply in global value chains.
The evolving economic relationship highlights the importance of cooperation in building resilient manufacturing ecosystems. By combining domestic production capabilities with international sourcing, technology and industrial expertise, India can continue developing its role in global manufacturing and supply networks.
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