Impact of the US - China Trade Rivalry on India's Roadmap to Viksit Bharat 2047

Abstract

The United States–China trade rivalry has become one of the most important developments shaping today’s global economy. What began as a tariff conflict in 2018 has gone on to disrupt global trade, supply chains, and investment flows. This paper explores how these changes affect India and what they mean for its goal of becoming a developed nation under Viksit Bharat 2047.

The study shows that India has gained several opportunities from this situation. With companies looking beyond China under the “China+1” strategy, India has seen growth in exports, rise in foreign direct investment, and expansion in sectors like electronics, pharmaceuticals, textiles, and IT services. At the same time, there are challenges for India such as continued dependency on Chinese imports, trade imbalances, infrastructure gaps, and global economic uncertainty.

The paper also looks at how India is responding through initiatives like Make in India, Atmanirbhar Bharat, and Production Linked Incentive (PLI) schemes, which aim to strengthen domestic manufacturing and reduce external dependence.

Overall, while the US–China trade rivalry creates uncertainty, it also gives a valuable opportunity for India. If managed well through the right policies and reforms, these global shifts can help India strengthen its position in the world economy and move closer to achieving Viksit Bharat 2047.