A Dominant China Provides Both a Challenge and a Blueprint for India

China's role has become a central theme not only in India's growth narrative but also in shaping the global economy

- Manas Pimpalkhare

In the Economic Survey 2025, China is mentioned 102 times, a sign of the long shadow that the country casts over the global economic landscape. Often referred to as a "manufacturing colossus," China's role has become a central theme, not only in India's growth story but also in shaping the global economy.

The survey, led by chief economic adviser V. Anantha Nageswaran, presents a clear picture: China's dominance presents both a challenge and a blueprint for India's future.

From geopolitics to the energy transition, manufacturing to artificial intelligence (AI), the survey paints a complex portrait of China's power. Its control over critical raw materials, supply chains, and emerging technologies puts India in a delicate position—one that demands diversification, local production, and innovation to mitigate the risks of dependency.

"China is a dominant force in the global manufacturing and energy transition ecosystems. It has gained a strategic advantage leveraging its competitiveness and economic policy to access and control key resources recognized today as critical for global supply chains," the survey noted.

For years, China has been the undisputed leader in global manufacturing. The survey underscores this by highlighting that China accounts for nearly 28.8% of global manufacturing, far outpacing India, which contributes only 2.8%. This vast gap remains a pressing concern for India's economic aspirations.

"India has a large opportunity to climb up the ladder," the CEA said, adding that the contribution of the industrial sector to the country's economic output also has potential to improve.

In addition, China's growing influence in critical minerals and electric vehicle (EV) supply chains presents a formidable challenge. The survey highlighted China's near-total dominance of global battery manufacturing and wind energy supply chains, areas where India is just beginning to establish a foothold.