The Influence Of Interest Groups On The Modi Government’s Economic Policy Towards China

Since Modi took office as Indian Prime Minister,China-India economic relations have witnessed major changes.In the early days of his term,Modi introduced many incentive policies to facilitate Chinese enterprises to invest and expand business in India.But while Chinese companies and investors are showing growing interest in the Indian market,Modi’s government has put obstacles in the way.From the repeated imposition of tariffs on Chinese products,to the frequent imposition of anti-dumping sanctions,to the reversal of agreements reached in long-running negotiations with China on regional trade agreements.Since 2019,the Indian government has adopted more unfriendly policies towards Chinese investors and companies.The Modi government first announced that all Chinese investments would be vetted by the government.Later,the tax authorities launched targeted investigations on companies operating in India,which seriously affected the operation of relevant companies.Existing studies have mainly explained this change from the perspectives of geopolitics,strategic competition,trade gains,and the COVID-19 pandemic.However,the existing studies do not pay much attention to the demands of interest groups in trade with China,and most of them only pay attention to industrial and commercial groups such as consortia.This paper is a supplement to the existing research.Groups with different interests make demands to the government in various ways,and some interest groups with a higher degree of organization have a great influence on government decision-making.The first chapter of this paper summarizes the changes of the Modi government’s economic policy towards China.The second chapter shows the demands of relevant interest groups in China-India economic exchanges by sorting out the interaction between interest groups involved in China-India economic relations and the government since Modi took office.On this basis,Chapter three summarizes the ways in which interest groups exert their influence.The fourth chapter also adopts the case study method,taking India’s attitude change in the negotiation of the Regional Comprehensive Economic Partnership agreement as a case,to reveal the process and mechanism of interest groups’ influence on the government.