Modi's Fridman podcast: What's behind India-China warmth?

Prime Minister Narendra Modi's three-hour interaction with MIT researcher and podcaster Lex Fridman has gone viral for his interesting comments on several issues. Modi's comments on China indicate a thaw in India-China ties, which became tense after boundary disputes a few years ago. His comments also drew a welcome response from China.

During the podcast, Modi emphasized that India and China should engage in a "healthy and natural" competition while ensuring that differences do not escalate into disputes. He also highlighted the deep historical ties between the two nations and underscored the need for dialogue over discord.

The thaw in India-China relations, which has been visible after Modi's meeting with Chinese President Xi Jinping at the BRICS Summit at Kazan last year, seems to be getting warm amid global shifts such as the tariffs policy of US President Donald Trump and Russia and the US coming closer.


What Modi said, and the Chinese response
Addressing past conflicts, including the 2020 border standoff, during the podcast with Fridman, PM Modi acknowledged the tensions but noted that his recent meeting with President Xi has led to progress. "After my meeting with President Xi, we have seen a return to normalcy at the border. We are working to restore conditions to how they were before 2020," he said. PM Modi also reflected on India and China’s historical role in global trade and cultural exchange, stating that both nations "have learned from each other for centuries" and were once economic powerhouses together. He stressed that "competition is not a bad thing, but it should never turn into conflict."

"Our focus is to ensure that differences don’t turn into disputes. Instead of discord, we emphasize dialogue," PM Modi said, adding that the recent border tensions are being addressed to restore normalcy.

Chinese daily Global Times, a mouthpiece of the Chinese Communist Party, recognised PM Modi's efforts to improve relations with China despite past tensions. The publication featured an article with insights from experts, commending PM Modi's advocacy for dialogue and cooperation during his conversation with Fridman.

Experts interpret PM Modi's statements as a practical stance towards India-China relations, recognising the simultaneous existence of cooperation and competition. "Modi's remarks underscore the Indian government's current pragmatic approach to advancing China-India relations, building on the positive momentum since the Kazan summit of the leaders. His remarks align with the broader trend of bilateral ties returning to a path of stable and healthy development," Global Times quoted Qian Feng, the director of the research department at the National Strategy Institute at Tsinghua University.

Qian told Global times that China-India relations made positive strides with both sides implementing the important consensus since the meeting in Kazan, strengthening exchanges at all levels and practical cooperation, resulting in a series of positive outcomes.

Why are India and China coming closer?
Amid global trade tensions, India and China need each other which could be the reason behind the growing warmth between the two countries. Less than two weeks ago, Chinese foreign minister Wang Yi sought to further stabilise ties with India as China faces a fresh trade war with the US.

Wang emphasised that it is in the best interest of both nations to work together. "Both sides have earnestly followed through on the important common understandings of our leaders, strengthened exchanges and practical cooperation at all levels, and achieved a series of positive outcomes. China and India are each other's largest neighbours. China always believes that the two should be partners that contribute to each other's success. A cooperative pas de deux of the dragon and the elephant is the only right choice for both sides," said Wang, also a member of the Communist Party of China (CPC) Politburo. Wang said as the two largest developing countries, China and India have a shared task to accelerate their countries' development and revitalisation. "There is every reason for us to support each other rather than undercut each other, work with each other rather than guard against each other. This is the path that truly serves the fundamental interests of the two countries and peoples."

Modi and Xi had met in Russia in October 2024 on the sidelines of the BRICS summit, shortly after the two sides agreed to complete the military disengagement process in eastern Ladakh. National Security Advisor Ajit Doval and Chinese Foreign Minister Wang held the 23rd Special Representative dialogue in Beijing on December 18. Weeks later, Foreign Secretary Vikram Misri travelled to the Chinese capital and held talks with his Chinese counterpart Sun Weidong under the framework of 'Foreign Secretary-Vice Minister' mechanism. After Misri's visit, India and China decided to resume the Kailash Mansarovar Yatra in the summer of 2025.

India is heavily reliant on Chinese imports, with the country’s trade deficit surging to $85.1 billion in fiscal year 2024. China was India's top import source with USD 65.89 billion, a 9.8 per cent year-on-year increase between April-October, 2024. The reliance on China has increased due to the Make in India policies in recent years. India still doesn't manufacture intermediate goods which are used to manufacture final products. These goods and other raw materials are imported from China.

The Economic Survey of 2024 had revealed that sectors like renewable energy bear the brunt of India’s dependence on Chinese imports. In addressing this imbalance and arresting the growing trade deficit, a focus on Chinese foreign direct investment (FDI) could help, the survey noted. "India faces two choices to benefit from China plus one strategy: it can integrate into China's supply chain or promote FDI from China. Among these choices, focusing on FDI from China seems more promising for boosting India's exports to the US, similar to how East Asian economies did in the past," the survey had said.

However, India remains cautious about normalizing ties with China. During his meeting with Wang in February, Foreign Minister S. Jaishankar had emphasized the need to restore mutual trust and jointly maintain border peace.