Daijiworld Media Network – New Delhi

New Delhi, Sep 11: Sanjeev Sanyal, a key member of the Economic Advisory Council to the Prime Minister, has stressed that India cannot simply cut China out of its economic plans despite the persistent trade deficit and strategic concerns.

On Tuesday, Sanyal acknowledged that measures like Press Note 3—introduced after the Galwan clash to regulate foreign direct investment from neighbouring countries—continue to influence bilateral trade. “The trade deficit with China has been an issue for a while… we will have to see how this pans out,” he said.

Highlighting China’s dominance in global manufacturing, Sanyal observed, “Even if we want to become an industrial power, a lot of the inputs will come from there for the time being. Maybe even in the longer future, there will be segments where there will be an important supplier.”

He cited India’s pharmaceutical industry, which depends heavily on Chinese raw materials, as an example of sectors where full self-reliance is not immediately feasible. “The idea that we can protect everything and manufacture every single thing at home may not quite work out,” he noted.

While emphasising the need to safeguard critical sectors, Sanyal concluded that gradual normalisation with Beijing would ultimately serve India’s long-term economic interests. “You cannot wish away China from the equation,” he asserted.