India will block Chinese tech opportunistically

Significance

With the stand-off unresolved and the deficit in India’s trade with China widening, it is looking to impose further restrictions, partly by leveraging the deterioration in relations between China and the West.

Impacts

• India will attempt to boost domestic production in areas such as pharmaceutical intermediates over the medium term.
• Western technology firms stand to benefit commercially from Indian restrictions on Chinese tech services.
• Closer Indian-US ties will ensure greater support from Washington for India’s diplomatic agenda vis-a-vis China and Pakistan.