Trade: How India became dangerously addicted to Chinese imports

Take a walk into an Indian toy shop and as well as picking up a new favourite plaything for a child, you might just get an insight into how the nation is battling for a batter economic relationship with its all-powerful neighbour China.

Six years ago, in an attempt to push local manufacturing and keep substandard toys out of its market, India raised tariffs on imported toys from 20% to 60% and eventually to 70%.

Retailers were up in arms…