India is pursuing two policy objectives that are at odds with each other. The first is the construction of deep, subsidised, protected domestic manufacturing capacity. This has been extensively expressed through the PLI (Productivity-linked scheme) across 14 sectors and quality control orders on steel, aluminium, chemicals, and electronics. Along with this, high tariffs to protect sectors till they are competitive, in addition to the strong push for self-reliance demonstrated

In 2019, Delhi left the RCEP (Regional Comprehensive Economic Partnership) due to concerns regarding asymmetric exposure to unchecked Chinese manufacturing for the Indian market through ASEAN routes. The exit was not irrational by any means; the concerns about arbitrage regarding rules of origin were justified. However, this has left India as the largest economy in the region behind China, without a diversified trade anchor to rely on. Illustration by The Geostrata Now, joini