Congress warns against complacency as China lowers long-term growth target

The Congress on Thursday said India should not draw comfort from indications of slowing economic growth in China, noting that the Chinese economy remains several times larger than that of India despite a reduced growth target for the coming years.
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In a statement, Congress general secretary in charge of communications Jairam Ramesh referred to China’s newly-announced gross domestic product growth target for 2026–2030, which has been set between 4.5 and 5 per cent. “China has just announced its GDP growth target for 2026-30 at 4.5%-5%, the first time in almost four decades that it has dropped below 5%,” he said.

According to him, Beijing is now placing greater emphasis on the quality of economic expansion rather than purely high growth numbers, particularly by focusing on technological innovation. “It is now stressing ‘quality’ of growth anchored in technological innovation. There is, however, no room for celebration here since the Chinese economy is almost four and a half to five times larger than India’s,” he said.

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‎Ramesh said the lower growth projections reflected structural challenges facing the Chinese economy, though its export sector continued to perform strongly and remained central to its economic strategy. ‎“There are clearly downward pressures on China’s GDP growth that are now structural in nature. But at the same time China’s trade surplus is at record levels that shows that exports continue to be a key pillar of its economic strategy,” he elaborated.

The Congress leader also flagged India’s trade relationship with China, saying the widening deficit was a matter of concern. “India’s trade deficit with China, for example, reached new highs in 2025,” he added.

‎Economists have observed that although China’s growth has slowed compared with the rapid expansion seen over previous decades, it continues to be one of the world’s largest economies and a dominant force in global manufacturing and exports. Trade between India and China remains substantial, particularly in sectors such as electronics, machinery, chemicals and pharmaceutical ingredients, even as New Delhi seeks to strengthen domestic manufacturing and reduce import dependence.