Indo-China Conflict Along LAC, It’s Reasons and Impacts on Our Economy


The situations along LAC are slightly tensed and are getting deeper day by day. China is
increasing its military force near LAC since April and India is also preparing well to deal with all contingencies. But the war if happened will impact India-China bilateral ties. This impact on bilateral ties would lead to an unfortunate impact on our economies too. So, everyone is wishing for the peace among both countries so that there would be no destruction and no loss of lives.

What is actually the conflict between India and China?

The Indo-China conflict is all about occupying the Galwan valley of eastern Ladakh by China
which is currently under the boundaries of India. The Chinese troops are coming forward
day by day from the Line Of Actual Control (LAC). China has illegally occupied
approximately 38,000 sq kms in the eastern Ladakh and is still trying to capture more area.

Related Article: India Bans Chinese Apps Including TikTok.

Current situations and the statement by Rajnath Singh

The current situation is tense because of the aggressiveness of China. Defence minister
Rajnath Singh recently stated about the attempts made by China’s People’s Liberation
Army (PLA) to transgress LAC in May. India too had made appropriate counter deployments, he pointed out. About June 15th Galwan clash he said, Indian soldiers had inflicted costs, including casualties, on the Chinese side.

Further referring to his meeting of 4th September and the subsequent meeting between the foreign ministers of the two countries, Rajnath Singh said India had struck to three key principles:

1. Both sides should strictly respect and observe the LAC.
2. Neither side should attempt to alter status.
3. All agreements must be respected.

Impacts of this conflict on our economy

The Galwan incident in which 20 Indian soldiers were killed was strange and will have a
“adverse impact on the bilateral relationships”. It will directly affect the trade between the two countries. The growth rate of both the countries will also get affected due to the stoppage of exports.


Both the countries have different perceptions about the LAC. China has already acquired the 38000 sq kms of Ladakh. On the other side we also can’t doubt about the India’s
determination to protect its sovereignty and territorial integrity. Overall this conflict is
weakening the bilateral relationships of the two countries by affecting the trade.


Writing Credits – Ankita Garg