The usually critical Chinese media on Friday lauded India’s initiatives to boost domestic production. Terming India as “a rising star in the world’s manufacturing arena”, Chinese state daily Global Times, published an article saying that Made-in-India products are likely to catch up with Chinese goods in the next 10 years. “India, with a high economic growth rate and young labor force, has grown increasingly attractive to overseas investors in the manufacturing sector,” the article, authored by Hu Weijia, noted.
It pointed out that “backward infrastructure and an unfavorable investment climate” may increase costs for foreign investors, however, they can still avoid import tariffs by localizing production and sales. 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, the article said.
Talking about online campaigns in India to boycott Chinese products, it said, “Several organizations in India have called for a boycott of Chinese goods amid an ongoing military standoff between the two countries in the Doklam region.” it said.
Commenting upon the current manufacturing scenario in India, the article noted 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. Given this situation, absorbing foreign investment could be a shortcut for India to realize its dream,” the article said. The Global Times article mentioned that it’s possible for India to catch up with China in terms of production and cut its trade deficit with China in the next 10 years. However, it said that India will have to grant equal status to foreign companies as it does with local manufacturers to retain it’s image.