It is said that diplomacy and economics are the art of the possible. That was amply proven by India and China in the last few days. As Trump decided to side with Pakistan and impose steep tariffs on India, PM Modi quickly veered closer to China. In politics and diplomacy, there are no permanent friends or foes so things can change at short notice. The good thing is that this crisis has pushed India closer to its neighbor. In the long run, that is always helpful. 

For a long time, the differences between India and China seemed very hard to reconcile. There were border disputes, there was Tibet, there was Taiwan, and then there was China’s proximity and support to Pakistan. However, politics is the art of putting differences aside to look at more opportunistic alliances. That is what the Indo-China proximity at this juncture is about. India needs China to sustain its manufacturing surge. At the same time, China also needs one of the most vibrant trade markets. Now, with India’s differences with the US, China and India also have a common bete noire in the form of United States. 

The axis of Russia, China, and India had been a rather uncomfortable coalition, despite being part of BRICS. Russia has an unlimited supply of natural wealth and strength in defence. China holds the key to the global supply chain, while India offers a new model and a vibrant consumer market. With India and China getting closer to each other, it makes the axis a lot more comfortable with each other. For India, the challenge will be to use the closer relations to reduce the trade deficit with Russia and China; but that would be something in the longer run. For now, it is essential to send out a message to the US that India is open to being pragmatic when it comes to its economic self-interest. 

From a broader perspective, it is key that India does not lose out on the good work it has done with the US. Trump tariffs may be a temporary issue and it is essential that India looks at the US more from a longer-term relationship. India runs its largest surplus with the US and boosting trade with the US is very essential to keep the overall trade deficit under check. Also, the US brings latest technology, digital dominance, and it also has a large Indian diaspora. Tariffs may be a short-term irritant, but the US remains key to India’s long term trade equations. But, for now, it is good that India is finally getting closer to China!