We can only hope that border tensions between India and China ease soon and there is no direct economic impact. But there may be indirect consequences. A further push back against Chinese investment could be on the cards. India may now also draw closer to Asia’s other democracies and to the US. That could lead it to reconsider its decision to opt out of major trade agreements in which it could contribute as a counter-weight to China, though its protectionist lurch over the past two years means this is far from clear cut.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services