India Eyes Tariff Bypass via Push for Stronger Trade Ties with China

India is reportedly examining mechanisms to strengthen trade and investment connections with China as a response to escalating tariff threats from the United States. Rather than pursuing a comprehensive free trade agreement, New Delhi is considering partial or sector-specific arrangements, possibly through re-engagement with the Regional Comprehensive Economic Partnership (RCEP), which it had previously declined to join in 2019.

These selective measures aim to enable Indian exporters—especially in pharmaceuticals, IT services, and agriculture—to access Chinese markets more favorably and sidestep broader tariff barriers. Government and industry stakeholders, including the Confederation of Indian Industry (CII), view this pivot as a pragmatic strategy to diversify trade avenues while maintaining export momentum. Still, national security and strategic autonomy remain critical concerns, prompting cautious navigation of such economic overtures. According to analysts, this approach represents an exercise in “smart economic diplomacy” leveraging selective engagement to reduce friction without compromising on geopolitical considerations.