India's China Trade Dilemma: Why No Tariffs Despite $100 Billion Deficit?

• India faces a projected $100 billion trade deficit with China in FY2025-26, yet avoids US-style tariffs.
• India's strategy is 'surgical' and 'calibrated decoupling', focusing on gradual dependence reduction.
• Heavy tariffs would harm India's 'pharmacy of the world' status by increasing API costs and impacting 'Make in India' initiatives.
• Tariffs would lead to inflation, raising prices of essential goods and posing political risks for the government.
• India uses WTO-compliant Anti-Dumping Duties and a 'China Plus One' strategy with PLI schemes and non-tariff barriers to boost local manufacturing.