Congress: Modi government let China 'capture' India's critical industries

The Congress party on Thursday alleged that the Modi government has harmed national interests by allowing China to dominate India's critical industries and by opening more opportunities for Chinese companies to expand their presence.

Congress president Mallikarjun Kharge cited a media report claiming that China still powers India's strategic industries to attack the government. There was no immediate reaction from the government or the Bharatiya Janata Party (BJP) on the Congress's allegations.

In a post on X, Kharge claimed that six years ago, Prime Minister Narendra Modi handed a clean chit to China after 20 Indian soldiers were killed in the Galwan Valley clash. "Our bravehearts chose martyrdom, but the Modi Government has surrendered India's interests to China," he alleged.

Kharge argued that dependence on China runs through the most critical sectors of India's economy. He said that since the Galwan clash, imports from China have increased by 101.81% by 2025-26, pushing India's trade deficit with China to $112.1 billion. He provided specific figures: China supplied 86% of India's antibiotic imports, cornered nearly 74% of India's active pharmaceutical ingredient (API), bulk drug, and drug intermediate imports in 2024-25, and accounted for 66% of India's electric vehicle (EV) component imports.

He also stated that nearly 75% of lithium-ion batteries powering Indian EVs are imported, with the overwhelming majority from China, and that India imported nearly 93% of permanent magnets from China in 2025-26. On solar energy, Kharge said China supplied more than 99% of India's undiffused silicon wafer imports in 2025-26, which are the foundation of solar cells.

Further, Kharge alleged that the Modi government has relaxed restrictions to allow four Chinese companies to bid for Indian government power projects. He also claimed that China continues to encroach on Indian territory in Arunachal Pradesh and Ladakh, and that its role in Pakistan's actions during Operation Sindoor was acknowledged by the Deputy Chief of Army Staff and is officially documented.

"The Modi government has hurt India's national interests by letting Beijing capture India's most critical industries since Galwan. Now they are opening more opportunities for the Chinese to flourish under the lens of his tinted 'Laal Aankh'!" Kharge said, taking a swipe at PM Modi.