The death of 20 soldiers in the disputed border area with China in the Galwan valley quickly sparked a backlash across India.
Indian officials also expressed anger, with one minister calling for a boycott of restaurants selling Chinese food.
The Indian government has not publicly announced its intention to boycott.
Bilateral trade between China and India has decreased by 15% since fiscal 2018. India’s consideration of imposing additional taxes and anti-dumping on imports from China, along with a wave of boycotts, has been widely reported.
A protester raises a slogan to boycott Chinese goods in the city of Kolkata, India, on June 17.
The first reason comes from the fact that China is India’s second largest trading partner after the US.
`China meets at least 70% of India’s drug distribution intermediary needs,` said Sudarshan Jain, president of the Indian Pharmaceutical Alliance.
India’s booming smartphone sector is also closely dependent on low-cost Chinese phone makers, which hold the largest share of the local market.
`We are not worried about finished goods, but almost all economies in the world import key components from China, like air compressors,` said B Thiagrajan, the company’s chief executive officer.
Thiagrajan added that it will take a long time to re-establish local supply chains.
The cooperative relationship between China and India in recent years has become increasingly closer, such as in the field of technology.
`There have been over 90 Chinese investments in Indian startups, most made in the last five years. 18/30 tech startups worth over a billion USD have an investor
Chinese direct investment in India appears to remain relatively low, at $6.2 billion.
Beijing accuses New Delhi of violating World Trade Organization (WTO) principles, but it has no ability to change the current situation, because `there is no way to force a country if it
This gives India an opportunity to find ways to reduce dependence on China, while focusing on increasing calls for self-reliance.
Credit rating and research company Acuite recently said that India’s domestic manufacturing sector is capable of replacing up to 25% of total imports from China, helping to reduce import costs by more than 8 billion USD per year.
However, the Indian government is said to be concerned about serious consequences for the economy if it boycotts Chinese goods, especially during the current severe recession.
To date, China has not reacted harshly to the border brawl, and the anger in India is escalating.
`It is extremely dangerous for India to allow anti-China groups to inflame public opinion, increasing tensions,` the newspaper wrote, adding that New Delhi should instead focus on `economic recovery`.