Q.9. “The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.” Explain this statement with examples. [UPSC 2024 GS P-2]

The statement that “the West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance” reflects the growing alignment between India and Western countries, particularly in the face of rising concerns about China’s economic and geopolitical influence. This strategic pivot is driven by both economic factors, such as the need for diversified supply chains, and geopolitical considerations, including the aim to counterbalance China’s assertive policies in global politics, trade, and security.

Here’s an explanation of the statement with relevant examples:

1. Economic Context: Reducing Dependence on China’s Supply Chain

Global Supply Chain Disruptions

• COVID-19 Pandemic: The pandemic exposed the risks of over-reliance on China for global manufacturing and supply chains. Lockdowns in China led to disruptions in the production and supply of essential goods, prompting many countries to reconsider their dependence on China for critical products like pharmaceuticals, electronics, and medical supplies.
• US-China Trade War: Tensions between the US and China, including tariffs and restrictions on Chinese imports, have driven Western nations to seek alternative manufacturing bases. India is increasingly seen as a viable alternative due to its large workforce, growing industrial capacity, and economic reforms aimed at attracting foreign investment.

India’s Potential as a Manufacturing Hub

• ‘China Plus One’ Strategy: Many Western companies are adopting a ‘China Plus One’ strategy, where they diversify their manufacturing operations to countries outside of China to mitigate risks. India, with its growing infrastructure, tech talent, and government incentives, is positioning itself as an attractive alternative.
• Government Initiatives in India: The Indian government has introduced several reforms to make the country more attractive for investment. Programs like Make in India and the Production Linked Incentive (PLI) scheme have been designed to boost manufacturing, particularly in sectors such as electronics, pharmaceuticals, and textiles, which have been traditionally dominated by China.
  • For example, Apple and Samsung have expanded their manufacturing operations in India, while companies like Foxconn and Wistron are ramping up production of smartphones in the country. This reduces their reliance on Chinese manufacturing bases.

Western Support for India’s Economic Rise

• Free Trade Agreements (FTAs) and Investments: Western countries, particularly the US, the European Union, and Japan, have sought to deepen economic ties with India by pursuing free trade agreements and increased investment. The US-India Trade Policy Forum and India-EU Free Trade Agreement negotiations reflect efforts to strengthen economic ties as part of a broader strategy to build resilient supply chains.
• Quad Collaboration: Under the framework of the Quad (India, the US, Japan, and Australia), there is growing cooperation in sectors like emerging technologies, supply chain resilience, and critical infrastructure to reduce dependence on China.

2. Geopolitical Considerations: Countering China’s Dominance

India as a Strategic Counterweight to China

• Indo-Pacific Strategy: Western countries, particularly the US, are fostering closer ties with India as part of their broader Indo-Pacific strategy to counter China’s assertiveness in the region. India’s strategic location, its growing naval power, and shared concerns over China’s expansionism in the South China Sea, the Indian Ocean, and along the Himalayan border make it a key partner for the West.
  • For instance, US-India defense relations have deepened through agreements such as COMCASA (Communications Compatibility and Security Agreement) and BECA (Basic Exchange and Cooperation Agreement), which enhance military cooperation, intelligence sharing, and interoperability.
• Quad Alliance: The Quadrilateral Security Dialogue (Quad), which includes India, the US, Japan, and Australia, is another example of how the West is aligning with India to counterbalance China’s growing influence in the Indo-Pacific region. The Quad’s focus on maritime security, infrastructure development, and resilience in the Indo-Pacific aims to ensure a rules-based order, directly countering China’s ambitions for dominance in the region.

India’s Role in Balancing China’s Economic Influence

• Belt and Road Initiative (BRI): China’s Belt and Road Initiative has expanded its influence across Asia, Africa, and Europe. Western countries, however, view BRI with suspicion due to concerns about debt-trap diplomacy and geopolitical control. India’s refusal to join the BRI aligns with Western efforts to provide an alternative to China’s infrastructure financing.
  • The Blue Dot Network, launched by the US, Australia, and Japan, with potential Indian cooperation, serves as a counter to the BRI. This initiative promotes high-quality infrastructure projects, in contrast to China’s debt-financed projects under BRI.
• International Organizations and Multilateral Forums: India’s rising stature in global organizations like the G20, BRICS, and the United Nations is seen by the West as a means to counter China’s influence in shaping global economic and political rules. India’s voice in advocating for a rules-based international order is increasingly aligned with Western perspectives.

China-India Border Disputes and Western Support

• The Galwan Valley clash in 2020 between Indian and Chinese troops further heightened India’s concerns about China’s expansionism, leading to stronger strategic ties between India and Western countries. In response, the US, along with its allies, openly supported India’s sovereignty and provided diplomatic backing.
• Western defense sales to India have surged, with India becoming one of the world’s largest importers of defense equipment. The US, in particular, has become a key supplier of advanced defense systems to India, further strengthening the strategic partnership aimed at containing China’s influence in South Asia and the broader Indo-Pacific.

India’s Role in Technology and Cybersecurity

• China’s dominance in global 5G infrastructure, through companies like Huawei, has raised security concerns in the West. In response, countries like the US and UK have looked to India as a potential partner in building alternative technology ecosystems that are not reliant on Chinese companies.
  • The US-India Strategic Partnership has focused on cooperation in cybersecurity, artificial intelligence, and telecommunications, with the goal of creating a more secure and diversified global digital infrastructure.

Conclusion

The West’s fostering of India as an alternative to China is a multi-dimensional strategy that encompasses both economic diversification and geopolitical alignment. Economically, India offers a viable alternative to reduce global dependence on China’s manufacturing and supply chains, particularly in key sectors such as electronics, pharmaceuticals, and infrastructure. Geopolitically, India’s growing partnership with the West—through initiatives like the Quad, defense cooperation, and Indo-Pacific strategy—serves as a counterweight to China’s expanding influence. As India continues to strengthen its role as a strategic partner, its collaboration with Western powers is likely to grow, reshaping global political and economic dynamics.