Connect with us

Business News

After Trade War & Covid-19, China’s Loss In Manufacturing Could Be Great News For India – Experts

Published

on

With the world battling the most terrifying pandemic of the century, a lot of business leaders and global organizations including Apple, Microsoft, Google are contemplating how to navigate through the crisis. 

Google, Microsoft To Move Out Of China; Vietnam, Thailand Set To Benefit The Most

In a webinar organized by Harvard University, the faculty of Harvard Bussiness School and India Inc executives held rigorous discussions and brainstorming sessions on economic uncertainties that follow the pandemic and highlighted the fact that this could be an opportunity for countries like India.

The Make in India campaign by PM Modi might have received a little skeptical reviews at home but  World bank President Jim Yong Kim sees it as a good idea.

When Rafale Jet Downed The Invincible US F-22 Raptor In An Aeriel Dogfight: Analysis

Kim said with many industries leaving China, India could well be a big beneficiary when it came to the manufacturing sector, even as he suggested that the country’s vibrant services sector must not get the short shrift as it attempts to project itself as a global manufacturing hub.

“I think that the efforts that are being made right now to explore how competitive India can be and I think it is very important. There are a lot of industries that are leaving China right now and they very well may come to India… I don’t see any downside to it,” he told  Economic  Times, in an exclusive interview.

Why Is The World Turning Towards India During Covid-19 Pandemic?

Kim spoke about how this could be a bright opportunity for India noting the “tremendous sense of optimism” about the country. Now at the 169th position in business, Indian PM Narendra Modi aims to bring it to the 50th position in the next few years and this could be a very important turning point in reaching the aim.

Ravi Venkatesan, former chairman of Microsoft India, who has created a social initiative called The Global Alliance, that is building a $100-million-plus SME Stabilisation Fund said “We need to act in cohesion and learn fast to make a difference. After this crisis, everyone needs to have an entrepreneur’s mindset. What is needed is leadership that can come from anywhere, everywhere and does not have a tittle.”

Actual Death Toll In Wuhan, China Could Be Over 40,000: Washington Post

According to Narendran, CEO and Managing Director, Tata Steel, the de-risking of supply chains originating from China, which had started following heightened concerns of a US-China trade war, is likely to be accelerated on the back of concerns over the recent outbreak.

“I feel this virus could be an opportunity for India because it accelerates the de-risking of supply chains which originates from China. That journey had started with a trade war between the US and China and now with this (virus) there will be even more reason for people not to be over-dependent on any one country,” Narendran said.

Chinese Navy, Marine Commandos Detected In Karachi, Pakistan; Should India Be Anxious?

Google is set to begin production of its latest low-cost smartphone — expected to be dubbed the Pixel 4A — with its partners in northern Vietnam as soon as April. Google also plans to manufacture its next-generation flagship smartphone — the Pixel 5, as it is expected to be called — in the second half of 2020 directly from the Southeast Asian nation, reported Nikkei Asian Review.

On the agricultural front, the sector is expected to do well post-monsoon. The construction of commercial property also continues to be strong. Automobile is the only sector that still has not been showing “great signs of recovery”; however, it is expected to start picking up post second half of FY-21.

Why India or Vietnam Can Never Replace China As World’s Manufacturing Hub?

Domestic steel prices have been on an uptrend since last November in line with international trends. After touching a low of 32,250 a tonne last November, domestic hot-rolled could prices have hit 37,000, implying an increase of 15 percent in the last three months.

Narendran speaking about reducing dependence on China also said, Tata Steel, which is dependent on China for consumables such as refractory, refractory compounds, steel mill rolls, electrodes and manganese as a metal, has already done a risk assessment in the first week of this month and is “pretty comfortable” till the end of April.

Asia Pacific

Africa emerges as a new battle ground for India and China for trade, commerce war

India sees this initiative as an effort by China to flex its economic muscle and extend the reach of its influence. “However, India’s engagement with Africa is not limited to trade and commerce.

Published

on

Post the border clashes, India and China are striving to create a robust influence in Africa through humanitarian aid and investments. However, with the countries adopting different outreach strategies, analysts suggest that competition between India and China is unnecessary as there is room for both to make their presence felt. 

Why China’s $200 Billion ‘Gamble’ On Africa Has Failed Miserably?

According to Maria Siow, a China-based journalist and analyst, India’s renewed focus on Africa is a result of China’s growing footprint on the continent, not just in terms of trade and commerce, but also Beijing’s rising maritime interests.

China’s Belt and Road Initiative aims at connecting Asia with Africa and Europe through land and maritime routes which would enable regional integration and growth in trade and commerce.

Recently, Chinese Foreign Ministry spokesperson Zhao Lijian said during a press conference that a total of 44 African countries and the African Union Commission have signed cooperation documents with China on the Belt and Road initiative.

India can ‘no longer’ choke China at the Strait Of Malacca as Beijing finds solution

“It is a vote of confidence in China-Africa cooperation from our African brothers,” he added.

India sees this initiative as an effort by China to flex its economic muscle and extend the reach of its influence. “However, India’s engagement with Africa is not limited to trade and commerce.

The Indian diaspora, for instance, has been a major force in several African nations’ pursuit of prosperity and political participation,” said Swaran Singh, a professor at the Jawaharlal Nehru University’s School of International Studies.

JF-17 vs Rafale: Why Pakistani JF-17 Thunder Poses A Serious Threat To Indian Rafale Fighter Jets?

India and China stand far apart in terms of the size of their economies. India’s US$2.7 trillion versus China’s US$14 trillion which acts as a roadblock for New Delhi to make further inroads in African nations.

According to United Nations trade data, 39 African countries imported more than US$71 billion worth of goods from China in 2017 and only US$21 billion from India.

“African governments are therefore aware that in spite of their rapprochement with India, China remains the most important – and at the government level, the most trusted – development and investment partner on the continent,” said Lin Minwang, the deputy director of Fudan University’s Institute for South Asian Studies.

CPEC Project A ‘Trillion-Dollar Blunder’, Pakistan Calls It ‘Outstanding Initiative’

Nevertheless, India has not made huge loans to African countries and thus avoided being a major part of the serious debt problems facing by many African countries today.

However, it is expected that India’s investment in Africa will become more valuable especially in Africa’s health care and pharmaceutical sectors. Sizeable investments have already been made in oil and gas, mining, banking, pharma, textiles and other sectors in African countries under the strategic initiative, “Focus Africa” by the Government of India launched in 2002.

Zhang Yongpeng, a senior research fellow at the Chinese Academy of Social Sciences’ Institute of West Asian and African Studies noted that even though India posed a challenge to China’s strategy in Africa, for instance in bidding for commercial projects, the economic threats were not daunting for now.

Trump Would Not Have Supported India In A Possible War Against China – US NSA

African nations are unwilling to choose between China and India because of the accruing benefits and investments from both nations. Also, the African governments are avoiding being dragged in conflicts, especially during the ongoing trade and diplomatic tensions between the US and China and the border tensions between India and China.

“India tends to have largely positive perceptions as a fellow Global South democracy. China can sometimes be more controversial, for example, due to the recent ill-treatment of Africans in Guangzhou,” stated Cobus van Staden, a researcher at the South African Institute of International Affairs.

Continue Reading

Asia Pacific

India refuses to review RCEP decision over China’s border hostility – Reports

Last year, India backed out of the RCEP agreement citing its negative effects on “farmers, MSMEs and dairy sector”. “The present form of the RCEP Agreement does not fully reflect the basic spirit and the agreed guiding principles of RCEP.

Published

on

India is firm on the decision to not become a member of the RCEP (Regional Comprehensive Economic Partnership). The Modi government is reportedly “not reviewing” its decision on RCEP due to the presence of China as a member.

According to the sources, India has decided it won’t join any trade agreement including RCEP where China is a member as matters have turned worse for India, especially after the border stand-off with China.

Last year, India backed out of the RCEP agreement citing its negative effects on “farmers, MSMEs and dairy sector”. “The present form of the RCEP Agreement does not fully reflect the basic spirit and the agreed guiding principles of RCEP.

It also does not address satisfactorily India’s outstanding issues and concerns. In such a situation, it is not possible for India to join the RCEP Agreement,” PM Modi had stated at RCEP summit in Bangkok. The summit included China, Japan, Australia, New Zealand, South Korea, and the 10-nation ASEAN grouping.

“There is no question to join the pact now that the prime minister has given a clarion call to a self-reliant or ‘atmanirbhar’ (self-reliant) India,” said an official who refused to be identified. The comments came after Thailand said all member countries have decided to sign the trade pact by the end of 2020 without India, and the deal may come into force by the middle of next year.

According to Chinese state mouthpiece, Global Times (GT), this is a method of venting of irrational emotions after a recent deadly border conflict in the Galwan Valley.

“India’s years of hesitation toward the RCEP are essentially due to the country’s weak manufacturing sector,” it said. “After the deadly border conflict in June, India’s diplomacy has entered an irrational state of anger.

It is expanding its emotional approach to many other aspects of relations. Using border tensions with China as an excuse for its latest RCEP rejection is just another example. If India continues this irrational approach, it would not only harm regional interests but would not benefit India’s own long-term interests,” it added.

It further criticised the Indian media for calling RCEP as “Chinese-dominated” and “Chinese-backed” trade deal.

Despite China’s belligerence, no other country has shown any hesitation for signing the RCEP agreement. “For countries such as Australia, South Korea, Japan and New Zealand it will be difficult to have inner coherence between geopolitics and trade,” said Rajiv Bhatia, a veteran diplomat.

Vietnam, which is now the ASEAN chair has said that it will continue to urge India to join the RCEP “whenever it feels comfortable”.

Amid soaring tensions in the South China Sea when the Chinese ship attacked and sank a Vietnamese boat near the Paracel Islands, it is still going to go ahead with the RCEP deal. Similarly, Australia, which has blamed China for the origins of Covid-19 and its growing military aggression, also seems clear about joining the RCEP.

China’s advice to India is that while facing a “more powerful neighbour”, it is imperative for India to properly assess its situation and rationally reduce its rivalry toward China to develop favourable economic and diplomatic strategies, rather than “irrationally heating up nationalism and blaming China when it encounters unsatisfactory situations”.

Continue Reading

Americas

Despite Chest Thumping, India Could Take Years To Reduce Economic Dependence On China – US Experts

Bilateral trade between India and China was estimated at $88 billion in the 2018-19 fiscal year, but India recorded a massive $53.5 billion deficit with China — the biggest trade deficit India has with any nation.

Published

on

Anti-China sentiments in India are at an all-time high. Recently India banned 59 Chinese-owned apps, including TikTok, while Chinese firms are being obstructed from participating in highway and other major tenders and projects. 

Has China Really Withdrawn Soldiers From Galwan Valley – Chinese FM Responds

The Indian hotel industry group also issued a blanket ban on Chinese tourists. “In view of the nefarious activities of China, it has been decided that no Chinese will be accommodated in Delhi’s hotels and guest houses from now onwards,” the Delhi Hotel and Restaurant Owners Association said in a statement in late June.

Reports suggest that goods from China are being delayed at Indian ports, and the Indian government are planning to impose higher tariffs and rigorous quality controls on shipments.

“Trade frictions, even symbolic ones, are obviously bad for business,” Pravin Krishna, professor of International Economics and Business at Johns Hopkins University, told DW. “As of now, it is not quite clear which goods are being held up at the ports and what the extent of the delay is.

The exact impact on businesses will clearly depend on their inventory positions and so on and this will vary quite widely across sectors and firms,” he said. “I imagine most businesses can manage delays, but perhaps not complete blockades.”

Bilateral trade between India and China was estimated at $88 billion in the 2018-19 fiscal year, but India recorded a massive $53.5 billion deficit with China — the biggest trade deficit India has with any nation.

China is also India’s biggest source of imports and exports more than 3,000 products to India at very competitive prices. Moreover, India has become a major destination for Chinese investment with key Indian startups like Zomato, Paytm having received millions of dollars’ worth of funding from China.

The total planned and current Chinese investments in India are estimated to be about $26 billion, according to the US think tank Brookings. Experts say – there is no easy pathway for India to reduce its current dependence on China and decoupling from China will be a slow, gradual process.

Observers believe that a trade conflict will likely be costly for both sides, especially given the timing of the current tensions. Both India and China have already been hit hard by the COVID-19 pandemic, which has created massive challenges for both the governments.

Their economies are undergoing a sharp devaluation. In India’s case, the rigorous lockdown has resulted in severe economic losses and the International Monetary Fund (IMF) now expects India’s GDP to shrink 4.5% this year.

To counter the economic collapse, Indian PM Narendra Modi launched “Atmanirbhar Bharat,” a campaign for a self-reliant India that aids businesses to make products in the country instead of relying on imports. This is in addition to the “Make in India” initiative.

Sumit Ganguly, professor of Political Science at the Indiana University Bloomington told DW – “Frankly, I think it amounts to foolish, anachronistic and pointless sloganeering,” adding that this is a “populist cry” and “will amount to little or nothing.” “The initial emphasis on self-reliance was coupled with rampant protectionism and had terrible consequences for Indian industry not to mention the hapless consumer,” he argued.

After India gained independence, import substitution industrialization, a policy centring on displacing imported goods with domestically produced ones, was the guiding principle of economic experts in the country.

Successive Indian governments from 1947 to 1991 followed this inward-looking model of economic development, but it chained private organizations and eventually proved disastrous in turning India into an industrial and economic power.

As a balance of payments crisis in 1991 pushed New Delhi on the verge of bankruptcy and the Indian government was compelled to introduce significant reforms and liberalize the economy.

If ‘self-reliance’ is merely an appeal to organizations to become more resourceful — that is fine,” Krishna said. On the other hand, if it is an appeal for import substitution, I would be worried: India’s experience with this in the past has been calamitous.

“Regarding the dispute with China, I sincerely hope it is not used as a pretext for a generalized return to protectionism.”

Via: DW May Not Reflect The Views Of The EurAsian Times

Continue Reading
Advertisement

Facebook

FEATURED

CORONAVIRUS CORONAVIRUS
Featured12 hours ago

Amitabh Bachchan – Bollywood superstar Amitabh Bachchan tests positive for COVID-19

Amitabh Bachchan tweeted - I have tested COVID positive, shifted to hospital, hospital informing authorities, family and staff undergone tests...

US-Russia US-Russia
Americas18 hours ago

US threatens Russia with consequences for paying bounties to Taliban in Afghanistan

The US has threatened to respond if the Pentagon confirms reports of Russian bounties to kill US soldiers in Afghanistan....

Imran-Khan-Pakistan Imran-Khan-Pakistan
Featured19 hours ago

Srebrenica genocide: Pakistan draws similarity between 1995 Srebrenica massacre with Kashmir

Drawing a parallel between Srebrenica genocide, and the current situation in Indian-administered Kashmir, Khan said he feared a massacre similar...

trump-dinner-saudi-arabia trump-dinner-saudi-arabia
Featured20 hours ago

Saudi Crown Prince Mohammed bin Salman (MBS) was prime suspect in Khashoggi murder case – UN official

A UN official has said that Saudi Crown Prince Mohammed bin Salman (MBS) was a prime suspect in the case...

jammu-kashmir jammu-kashmir
Featured20 hours ago

Kashmir will get more affected than Tibet in India, China clash – British Author

Dragon Fire, a novel by British author Humphrey Hawksley, written 20 years ago depicted a war erupting between China, India...

Indian-Military-Base-Indonesia Indian-Military-Base-Indonesia
Asia Pacific22 hours ago

India can ‘no longer’ choke China at the Strait Of Malacca as Beijing finds solution

The Strait of Malacca is a strategic waterway between Indonesia and Malaysia through which the majority of Chinese imports pass....

Tayyip-Erdogan Tayyip-Erdogan
Featured2 days ago

Hagia Sophia: Turkey turns iconic Istanbul museum of Hagia Sophia into mosque

The court ruled that Hagia Sophia was owned by a foundation established by Sultan Mehmet II, also known as Mehmet...

Apache-Helicopter Apache-Helicopter
Featured2 days ago

Indian Air Force Receives Complete Delivery Apache, Chinook Helicopters

Boeing India also tweeted: Thank you, @IAF_MCC, for your partnership. We’re happy to have completed the deliveries of the 22...

BEST-CANCER-HOSPITAL-IN-DELHI-NCR BEST-CANCER-HOSPITAL-IN-DELHI-NCR
Featured2 days ago

COVID-19 Exposes India, Philippines To Higher Risk Of Cancer; Australia, Malaysia Safest – Index

According to an index prepared by the Economist Intelligence Unit, Australia, Malaysia and South Korea are most prepared to meet...

US-China-Trade-War US-China-Trade-War
Americas2 days ago

China Fighting India With ‘Sticks & Stones’ Cheaper, But Confronting The US Can Bankrupt China: Experts

The news of relentless India-China border tensions and all other dispute that China has with its neighbours like Taiwan, Japan,...

Advertisement

Trending