What’s Next for the India-China Trade?

Chetan Ahya, Morgan Stanley's Chief Asia Economist, discusses the evolving economic relationship between India and China. He highlights India's growing trade deficit with China ($120 billion) and explains India's need for Chinese technology, capital goods, and critical inputs for its industrialization. Conversely, China seeks to leverage India's rapidly growing market. Ahya suggests that easing restrictions on Chinese foreign direct investment in India could significantly benefit both nations, despite geopolitical complexities that may hinder progress. The podcast concludes by emphasizing the importance of monitoring this dynamic relationship.