The situation signifies a major structural change in employment, integrating informal work with formal structures and impacting GDP. The gig workers are expected to contribute significantly to India's GDP, potentially up to 1.25-2.5 percent by 2030. Amid economic uncertainty and shifts in the labour market, the gig economy has been fast expanding, creating frustrations among low-earning self-help workers and freelancers while rising imports continue to dampen the country’s manufacturing sector growth and better job prospects.

On the contrary, the manufacturing industry has remained a cornerstone of China’s economy and a crucial sector underpinning the global economy. The manufacturing sector’s added-value accounted for around 26 percent of China’s total GDP, underscoring its vital role in the nation’s economic structure. Despite a gradual shift towards a more service-oriented and high-tech economy, manufacturing remains a key driver of China’s economic growth, providing substantial stable employment, innovation, and export revenue. China's manufacturing industry operates like the primary engine for its massive exports, which resulted in a record $1.2 trillion trade surplus for the country in 2025.

The total trade surplus reportedly included over $116 billion on account of India alone. China has become India’s single largest import source. India's exports to China were worth only US$ 19.75 billion as against its bilateral trade volume of $155.62 billion. The country’s trade deficit with China reached an all-time high of US$ 116.12 billion, last year. In 2024, the trade deficit was $ 99.21 billion with China's exports totalling to $113.45 billion, and India's outbound shipments to China almost stagnating at $14.25 billion.

Imports from China are eating into the vitals of the country’s manufacturing space, especially in the small and medium scale sector. India’s manufacturing industry has been constantly struggling with poor performance (logistics, power), complex regulations, skill gaps, financing issues for MSMEs, slow technology adoption and structural problems such as high wages and weak backward linkages. This is happening despite government efforts like 'Make in India' and production-linked-incentive (PLI) schemes.

India’s manufacturing industry is faced with the syndrome of stalled growth and limited global competitiveness compared to service sector gains. Among the key issues behind the slow pace of manufacturing growth are lack of new generation entrepreneurs with long-term business vision, high logistics costs (around eight percent of GDP vs. 14-18 percent in some regions), a massive skill deficit (only 4.7 percent trained as against 96 percent in South Korea), and institutional barriers slowing firm exits/entry, hindering productivity.

India’s rising imports, especially those assorted cheap products from China, are causing a complex and varied impact on the domestic job market. Imagine the continuing import of Chinese “manjha”, a term for sharp, synthetic kite string, which is causing numerous deaths and serious injuries to people and animals across the country, leading to widespread bans and calls for stricter enforcement! The string, often coated with glass powder or metal, acts like a razor and is a persistent public safety hazard, especially during kite-flying festivals like Makar Sankranti.

India's cheap imports from China in 2025 were dominated by mobile accessories, earbuds, components, machinery, organic chemicals, plastics, toys, festive lamps, sports goods, home decors and also industrial inputs such as iron/steel and fertilizers. These imports are driven by low manufacturing costs — although consumer goods like toys, textiles, and home appliances also feature heavily due to high demand and variety, creating significant trade deficits. The cheap imports often undercut domestic manufacturers, forcing them to reduce production and lay off workers.

India has been struggling to control the import surge and reduce the merchandise trade deficit. The situation is driven by a combination of high domestic demand for commodities (like gold) and global geopolitical shifts. The trade policy seems to be delinked with the domestic manufacturing policy. The international commerce policy is heavily pressured. It needs continued focus on domestic production and export diversification. While export growth has remained resilient, the surge in imports, especially in sectors like gold and electronics, has constrained efforts to control trade deficits. During April-December, 2025-26, India’s merchandise exports increased by only 2.44 percent to US$330.29 billion while its goods imports went up by nearly six percent to $578.61 billion. The total merchandise trade deficit reached a whopping $248.32 billion.

To save jobs and create stable employment, India should follow the latest US example or President Donald Trump’s punitive import tariff policy of 2025, the core essence of which is to bolster local manufacturing, create domestic jobs, reduce trade deficits, and lessen reliance on foreign countries, particularly China, through broad import duties and "America First" trade principles. Incidentally, US merchandise imports from China dropped significantly in 2025. President Trump linked the country’s trade and tariff policies with foreign policy framework.

Tariffs are framed as a tool to enhance national and economic security of the US by reducing dependence on adversaries. It is difficult to understand why India’s trade cum tariff policy has overlooked the country’s national and economic security interests by continuing its dependence on its main adversary, China. It is time that India protects and grows the country’s manufacturing industry. Such a step will create more stable jobs and better industrial environment in the country while supporting a healthy growth of the gig work culture. (IPA Service)