Well the biggest reasons of trade imbalance is the electronics which we import from China almost 35 billion$. Lemme give some examples why trade should not stop:
1.
We humans are basically no different than animals. We will kill each other if we have no interdependence. Globalisation has proved it no doubts. 2. I agree than China can give a tough competition, but do you know than a tiny country South Korea has almost 40 billion$ trade surplus with China the world largest manufacturer. It wont mean China will stop trading with them. But China will trade more and more because it knows eventually Chinese companies will out compete them. Just like Korea's Samsung today has destroyed the entire japnese electronics market. Samsung's profits are double the amount of top 9 japnese electronics giants combined.
3. Now take the example of Micromaxx a Indian mobile company. It is now destroying all the mobile phone providers in India which is dominated by mostly foreign companies. It is now starting to manufacture lcd tvs and phones in India at its new plant.
We dont need to stop trading but do what we did in Auto Mobile sector. Provide a level playing field so companies can manufacture and get good prices. Indian Companies will just come if we do that. Then we need to pitch Indian companies against foreign. The new electronics policy will play a big role in this.
New Electronics Policy to target $400 bn output - Indian Express