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China puzzle: Great Wall to gateway
Business Standard
|July 23, 2024
Survey bats for more FDI from China to tap export market
t is termed the most talked-about "frenemyship" in Asia or a not-so-successful "Hindi Chini Bhai Bhai" bonhomie. In the age of the China Plus One, the Economic Survey aims to redraw the relationship with the neighbouring superpower to India's advantage.
While the neighbour is mentioned 132 times in the Survey, it is proposing a two-dimensional strategy to benefit from China Plus One, either by integrating into China's supply chain or by promoting foreign direct investment (FDI) from China, calling FDI "advantageous". The Survey cited examples of Apple and its supplier Foxconn shifting to India to derisk themselves, due to disruptions caused by Covid-19, growing tensions between US and China, and rising costs of doing business in China. "The domestic consumer market is what makes it attractive for firms to set up their operations in India," it said.
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