CHINA-INDIA: ECONOMY

 Global Times on November 27, 2014, published an article which said that India could benefit in its effort to create a manufacturing base by tapping in to China's sunset industries. It cited Justin Yifu Lin, a well-known Chinese economist, as saying that any country has strengths in boosting its own economy, but the linchpin lies in whether it can discover its potential advantages and implement guidelines for industries step by step. The newspaper said: 

"there is a shortcut for India to recognize its own potential edge: What manufacturing sectors can it take over from China, or what sectors does China expect to or have to transfer abroad?
The global manufacturing chain has now been fully segmented. What India needs to move into are the products China has been making but lacks advantages in doing so compared with India. In other words, China's sunset industries are where India's hope lies.
Chinese corporations that manufacture these products can bring not only capital and order, but also technologies, managerial expertise, market and support in other arenas.
However, New Delhi's strict control and regulation have set obstacles for Chinese enterprises to enter its market in recent years. For example, some textile firms would rather choose Vietnam, Cambodia and even Myanmar as their investment destinations. 
The Modi government has decided to put in place an open policy in 25 sectors including textile, biochemistry, iron and steel, as well as petroleum. But this, however, is far from enough. It needs to adopt more preferential policies toward the Chinese manufacturing industry.
At present, the key to promoting India's manufacturing industry is not whether it can replace China, but whether it can give full play to its own advantages. 
India should take over some manufacturing sectors from China, just as the Chinese mainland once did from Japan and the four Asian Tigers, namely, Hong Kong, Singapore, South Korea, and Taiwan.
If India can follow China's steps in a steadfast manner, there is hope that it will surpass the current biggest international manufacturing hub.
And if the two countries can draw up a plan of comprehensive cooperation in manufacturing, it will exert far-reaching influence upon the changes in the Asia-Pacific architecture."







Subscribe to Newswire | Site Map | Email Us
Centre for China Analysis and Strategy, A-50, Second Floor, Vasant Vihar, New Delhi-110057
Tel: 011 41017353
Email: office@ccasindia.org