{"id":33361,"title":"Before the G20 Summit in New Delhi: Can India Be an Economic Alternative to China? Yes and No","link":"https:\/\/bst-europe.eu\/de\/economy-security-trade\/before-the-g20-summit-in-new-delhi-can-india-be-an-economic-alternative-to-china-yes-and-no\/","date":"8. September 2023","date_unix":1694181016,"date_modified_unix":1748337851,"date_iso":"2023-09-08T13:50:16+00:00","content":"

„Geopolitical conflicts are on the rise, leading to increasing weaponization of economic relations. The EU\u2019s introduction of a de-risking agenda earlier this year is an attempt to strive for more resilience, has diversification of trade and investment, focusing on more like-minded political and economic system partners as a key strategy. India, host of this year\u2019s G20 Summit and now the world\u2019s most populous country (replacing China this summer), is in the spotlight. However, the EU should take a sober stance on deepening its relationship with geopolitical \u201cgo-their-own-way\u201d India.“<\/em><\/p>\n

India has had a mixed relationship with European countries \u2013 with the United Kingdom traditionally at the center. The UK’s departure from the EU in 2019<\/strong> reduced the attractiveness of trade and investment relations with the EU for India.<\/p>\n

Nevertheless, the EU remains an important but complex partner for India and vice-versa. Recent geopolitical turmoil has, however brought the two closer together. For example, negotiations on the bilateral free trade agreement (FTA) \u2013 halted in 2013 \u2013 were taken up again in the summer of 2022.<\/p>\n

Relations between China and India have become frostier in recent years, increasing India\u2019s interest in closer cooperation with Western countries. The Asian Big2 hold diverging views on the international role of the BRICS, and India is wary about China\u2019s hegemonic ambitions in Asia, where India regards itself as a key regional player. Xi Jinping\u2019s no-show at the G20 summit in Delhi will not help soothe these tensions.<\/p>\n

As more and more European companies look for ways to diversify trade and investment away from China, the EU hopes India can play an important role – with the resurrected negotiations of a trade agreement as a potential door opener. Taking a closer look at India\u2019s potential to be an alternative to China or at least partially replace it, two factors currently speak in India\u2019s favor and three in disfavor.<\/p>\n

The EU\u2019s trade relations with China and India<\/strong><\/h2>\n

The EU’s current trade relations clearly show that China is one of the EU’s most important trading partners.<\/p>\n