Industrial cooperation can benefit India, China

 Industrial cooperation can benefit India, China

Industrial cooperation can benefit their growth and usher into a new world of globalisation.

The Dollar Business Bureau

Greater industrial cooperation can help mitigate distrust between Indians and Chinese, while directly benefitting their growth and ushering into a new world of globalisation, a Chinese daily reported on Thursday.

"Industrial cooperation can help reduce distrust between Indians and the Chinese. The future direction of the Sino-Indian relationship depends on whether the nations' economic activities can alleviate their long-standing concerns," an article in the state-run Global Times said.

The article stressed that industrial cooperation can directly profit the two neighbours’ economic growth and reduce their nationalist sentiments. It said the two neighbours should look at the big picture rather than get stuck on a disputed patch of land

Referring to the recent visits of Apple CEO Tim Cook and Foxconn Chairman Terry Gou in India and their plans to relocate their factories from China to India, the Chinese daily said the emergence of Make in India shall bring India and China into more fierce competition in some industries. It said many Chinese companies have already started showing interest in investing in India. 

In order to reduce direct rivalry between the world’s two largest emerging economies, the article said India and China need to maintain their upward trajectory and explore more industrial connections. Joint efforts in different industries would encourage unprecedented benefits and bolster the value chain of shared interests.

“Many Indians fear China's growing presence. Such a sentiment arises from years of estrangement despite being neighbours. Conservatism emerges in fear of competition. When competitiveness of 'Make in India' is lower than 'Made in China', the railways will ignite concerns among Indians about China-made products," it said.

“Such concern is one of the major barriers that obstructs India from introducing more foreign investments into local manufacturing and hinders the revenue streamlining.” 

The article placed emphasis on the current level of trade engagements between the two countries, while highlighting an apparent eagerness among industries and governments to further trade to its potential.  

“As the Chinese steel, construction, machinery, textile and electronics industries are eager to enter the Indian market, and India's IT, pharmacy and chemical industries are waiting to tap into the Chinese market, there is a great need for a platform where industries, capital and technologies can connect," it concluded. 

The Dollar Business Bureau - Jun 03, 2016 12:00 IST