Beijing, Aug 11: China says India would take 10 years to reach the Chinese quality and level of manufacturing. Chinese state-run media outlet, Global Times, cites an Indian survey to say that Indians prefer Chinese products because they are cheaper despite right-wing groups calling for their boycott over the Doklam dispute.
“There are complex explanations for the cost advantages of made-in-China products, such as complete domestic industrial chains, which can help cut production costs. India has long wanted to replace China as a global manufacturing hub but that goal cannot be achieved overnight,” Global Times says.
However, it says there is a short-cut to India’s dream of becoming a global manufacturing hub—absorbing foreign investment.
“Although backward infrastructure and an unfavorable investment climate may increase costs, foreign-based manufacturers can avoid import tariffs by localizing production and sales. Thus, made-in-India products are likely to have some advantages over their Chinese counterparts, and they could also be conducive to narrowing India’s trade deficit with China,” it says.
As India’s consumer market matures, it will attract more investment in the next 10 years.
Products made in India by MNCs could have some edge over Chinese products and even help India lower its trade deficit with China, it says.
But, the Chinese outlet says, India’s manufacturing growth depends on granting national treatment to foreign-based companies doing business in India.
“Made-in-India products don’t necessarily have to be produced by domestic enterprises. For instance, Huawei smartphones made in India should enjoy the same treatment as local products because the Chinese company can create jobs and generate tax revenue for the local economy,” it says.
It says India can catch up with China in terms of production but not if it metes out unfair treatment to foreign-based investors and relies simply on domestic enterprises to turn itself into a global manufacturing hub.
India can’t replace China as global manufacturing hub overnight, says Beijing daily
