Contents
Introduction
India and China, two rising Asian powers, share deep civilizational ties yet remain locked in a structural rivalry. Divergent interests, unresolved borders, and strategic competition make China India’s foremost challenge.
Why China remains India’s primary strategic challenge
- Unresolved boundary dispute and military standoffs: Despite multiple rounds of talks, the Line of Actual Control (LAC) remains disputed. Galwan (2020) and persistent Chinese incursions in Eastern Ladakh highlight mistrust and militarization.
- Asymmetric economic and military power: China’s economy ($18 trillion GDP) and defence budget ($230 billion) dwarf India’s (~$4.1 trillion GDP, ~$73 billion defence budget), limiting India’s bargaining power.
- Geopolitical divergence: China’s close ties with Pakistan (CPEC through PoK), Belt and Road Initiative, and growing footprint in South Asia and the Indian Ocean threaten India’s sphere of influence.
- Limited interest convergence: While both are in BRICS, SCO, and RIC formats, divergences dominate — trade imbalance (~$100 billion deficit), border tensions, and opposing positions on Indo-Pacific.
- Technology and security concerns: Cyber intrusions, rare earths dominance, and critical technology supply chains (e.g., semiconductors, telecom) raise vulnerabilities.
Foreign policy imperatives for India
- Pursue strategic autonomy with diversified partnerships: Maintain RIC dialogue but deepen Quad ties (with US, Japan, Australia) and G7 outreach to counterbalance Beijing. Strengthen strategic ties with Russia despite US pressures, leveraging energy and defence.
- Leverage multilateral platforms and norms: Use BRICS, SCO for dialogue, but push for rules-based order in the Indo-Pacific. Engage ASEAN and IORA to strengthen maritime diplomacy and connectivity.
- Strengthen deterrence and border infrastructure: Accelerate projects like the Border Roads Organisation’s advanced connectivity along the LAC, deploy ISR and satellite assets, and modernise forces (Agni-5 test, Tejas Mk1A). Indigenisation through Make in India and Atmanirbhar Bharat to reduce dependency on Chinese supply chains.
- Economic resilience and technological capability: Diversify trade and investment partners, incentivise domestic manufacturing in electronics, critical minerals, and defence. Invest in AI, cybersecurity, space, and critical tech partnerships with the West and East Asia.
- Engage China where possible, manage conflict where necessary: Confidence Building Measures (CBMs), military-to-military hotlines, and dialogue mechanisms can avoid escalation. Explore selective cooperation on climate change, multilateral finance (AIIB, NDB), and public health.
Strategic imperatives at home
- Political and economic unity: Domestic cohesion and economic reform enhance credibility abroad.
- Defence-industrial reform: Private sector, FDI liberalisation, and R&D to build credible deterrence.
Conclusion
India-China relations will remain marked by competition more than cooperation. Managing this rivalry needs a mix of deterrence, dialogue, partnerships, and domestic strength to safeguard India’s sovereignty and strategic autonomy.


