India and China are cautiously reopening diplomatic and economic channels after years of friction, thanks to some incredibly pragmatic moves by both sides under the shadow of tariffs and geopolitical uncertainty. While the rapprochement is fragile, it offers Indian industry more than just a temporary recalibration. It creates a chance to address long-standing weaknesses in scale, speed, knowledge, and cost competitiveness. The question is whether Indian industry will treat this moment as a catalyst for transformation or reduce it to short-term tactical gains.
“Disengagement is not a strategy. Selective engagement, anchored in domestic capability, is the way forward.”
Indo-China ties for decades have been seen from the lens of the ’62 war. It must however be kept in mind that not even a single bullet has been fired at this border since 1967. This is a reflection of the maturity and the priorities of the two cultures. Rather than living under the shadow of the ghosts of the past, it is time to look forward and create economic bondages which make war unviable for both countries. It is also the time to forge a mutually beneficial partnership between the two largest nations on earth, rather than continuing to have a hyphenated relationship which runs through Pak. For Indian industry, this openness of the governments offers some unique opportunities.
Closing technology gaps
Indian MSMEs often struggle to meet global benchmarks in efficiency and digital adoption. Strategic collaboration with Chinese suppliers and equipment makers can accelerate technology transfer. But absorption is key—Indian firms must indigenize and adapt technologies, not simply import them. Done right, this can fast-track the modernization of India’s industrial base. Chinese firms are in the process of upgrading to higher value-added goods and would be eager to partner Indian firms for mass production.
Strengthening supply chains
Multinationals are now diversifying through the China Plus One strategy. India has a prime opportunity to position itself as the preferred “plus one,” provided it can deliver cost-competitive, resilient supply chains. Partnerships that blend Chinese expertise with Indian execution can strengthen vendor ecosystems while embedding India deeper into global trade flows.
“India’s chance is not to replace China, but to complement and diversify global manufacturing.”
Turning capital into capability
China was developed with US investment and sourcing in 80’s and 90’s. Today Chinese GDP is higher than what US used to have when it began investing in China. India has the opportunity to attract Chinese investment, which if carefully filtered, can help plug gaps in electronics, renewables, and advanced materials. Yet foreign capital must be seen as an enabler, not a dependency. Funds should be channelled into building domestic skills, R&D, and infrastructure so that capabilities remain firmly rooted in India.
Learning nation-building from China
China has built an amazing ecosystem of technology, infrastructure and processes. It is the only country of India’s scale and size which has done this so successfully and we have the opportunity to learn from that. Not only our industry but even our bureaucrats and decision makers must learn with an open mind how China has created this unbeatable machine to rule global manufacturing.
A limited but transformative window
Security sensitivities will guide the pace of engagement. But shutting out opportunities wholesale risks leaving Indian industry stagnant while others move ahead. By treating this opening as a pragmatic pathway rather than a geopolitical gamble, India can turn selective engagement into a tool for industrial renewal.
If Indian manufacturing uses this rapprochement to overcome internal bottlenecks, the long-term gains could be profound: greater competitiveness, deeper global integration, and a stronger foundation for industrial leadership.
“This moment is not about business as usual—it’s about building the India of the future.”
(The author is the CEO & Founder of Wonderchef, one of India's leading home appliances company. Views expressed are his own.)
(The opinions expressed in this article are those of the author and do not purport to reflect the opinions or views of THE WEEK.)