Economy

Now, China looks to India as key market

Mutual interest: Indian firms want China to share its technology and partner with them.   | Photo Credit: Paul Noronha

As its trade war with the U.S. intensifies, China has started looking at India as a major market to sell its products and machinery. However, Indian companies want China to share its technology and even partner with them in its growth story rather than treating India purely as a market of its products.

Over 100 Chinese firms displayed their products and solutions at an exhibition in Mumbai this week. It was claimed to be one of the biggest exhibitions of Chinese products in India, indicating growing engagement of China with India.

“We [India and China] are in a better time today and increasing economic exchanges. We are not only bringing home appliances but also getting machinery products to India,” said Tang Guocai, Consul General of China in Mumbai.

To a question, Mr. Guocai said: “We are in a globalised world. There are different crisis in different regions in different times. As far India and China are concerned, it is a better time for cooperation.” On the issues of trade imbalance, he said: “ We are now seeing growing imports from India, mainly agriculture products, pharmaceuticals and manufacturing.

“More Chinese manufacturing companies coming to India. From a competitive background, the situation is changing. Both the leaderships of India and China are determined to bring the two countries closer.”

Focus on manufacturing

However, Vandan Shah, co-chairman, CII western region, said: “The Chinese firms have come here to expand their market but we should not be only focussing on buying. We should rather focus on how to manufacture these products by borrowing the newer technology, machinery and trends from China.”

“We don’t want to make the machinery. We actually want to sell those parts in the U.S. and Germany which the Chinese are already selling. So, we want to partner with such manufacturers as extra duties are now being levied on them. So let the Chinese become our marketing partners,” he said. He said the Chinese companies should now consider investing in Indian companies on a profit-sharing mode.

India and China’s bilateral trade is approximately $85 billion out of which India’s exports are about $13 billion.

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Printable version | Oct 22, 2020 4:18:31 AM | https://www.thehindu.com/business/Economy/now-china-looks-to-india-as-key-market/article25791587.ece

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