India’s economic relationship with China has reached a critical juncture as the trade deficit surged to a record $112 billion. Data indicates that this gap is not merely a result of consumer demand but a deep-seated structural reliance on China for essential manufacturing inputs. Currently, vital sectors including electronics, machinery, and organic chemicals depend on Chinese imports for 40% to 44% of their supply. The Global Trade Research Initiative (GTRI) has issued a stern warning, suggesting that India must prioritize domestic capacity building to bring this dependency down to a safer threshold of below 30% to avoid potential supply chain disruptions or geopolitical vulnerabilities.