What are the strategic challenges to the global economy in active decoupling from China? How will it benefit India's economic growth prospects?

Decoupling from china :- strategic challenges

china has very rapidly witnessed a growth in economy and most of the world's countries depend on china for: → raw materials → finished good.

→ thus china is at the central stage in supply chain of global economy → especially because of its progress in IT sector & semiconductors → major countries like USA, India, European nation depend on china

for their raw materials (4) During COVID - China closed its border that impacted the world economy severely (5) Thus the countries started looking for alternative to China for diversifying its supply chain (6) eg!- India-Australia-Supply chain resilience initiative

Despite these issue it is not easy for the world to go for active decoupling -because

(1) China has comparative advantage in semiconductor based raw materials eg!- Lithium, Silicon etc (2) The trade balance of especially middle income countries is tilted heavily in favour of china (3) Active decoupling can impact economy of the other nation.

Challenges for India :-

(1) India shares border with China, any change in equation can impact India's sovereignty as well

(2) Indian industries depend on China for raw materials until a viable alternative is not available. It would not be wise to decouple

(3) China also acts a good market for Indian products - which will be lost if China retaliates in same way.