China, as expected, has remained the largest
source of India's imports in 2020, highlighting the economic complementarities
of the two Asian economies which is exactly what could help India to promote
its "Make in India" campaign, if New Delhi could adopt a pragmatic
approach and seize the opportunity to better connect with Chinese industrial
India's keeping accelerated provocation toward China from border to economic
issues in 2020, the country "imported goods worth $58.71 billion from
China" in the year, local media outlet the Times of India reported, citing
Hardeep Singh Puri, minister of state for commerce and industry.
China remains on top of its purchase list, the data also laid bare the
absurdity of the irrational populism in India which once instigated mobs to
stage boycotting products made-in-China in the past two years.
to the Indian official, the major items of import from China include telecom
equipment, computer hardware and peripherals, daily goods, organic chemicals,
machinery and electronic products.
leading manufacturing power in the world, China possesses comparative
advantages in many sectors, making it difficult to be displaced in production
chains. With China offering high-quality products at reasonable prices,
consumers in India know what to choose themselves; while with high potential
for the two sides to promote mutual beneficial economic co-operation, those
ill-intended political interference by Indian politicians would only end up in
import data offers a clear blow to the surging populism in India. Though it may
not completely disappear, it will face a narrowing market in the future with
diminishing margin effects.
year of confrontation, it's clear that it is cooperation is the only possible
way for India to eke out consistent economic growths. And it's foreseeable that
the bilateral trade between the two nations will keep rising which will
significantly facilitate the recovery of Indian economy from the pandemic
worth pointing out is that while India recently showed its intention to loosen
obstruction by reinstating some degree of economic cooperation with China, New
Delhi, on the other hand, has been playing up the reconstruction of industrial
chains with the US, Japan and Australia under the so-called Quad framework.
differences of the two approaches of India are evident, as cooperation with
China will boost its economic recovery from the recession, while the other is
more of a political stunt.
destiny of an industry chain without a valid economic foundation is
it's each country's special economic and industrial structure that determines
cooperation or competition among different economies. Taking China and India
for instance, the two economies both have large domestic markets, but the two
have quite different industrialization structures, leaving significant
potential for the two sides to seek industrial connection and to boost each
other's development through wider cooperation. Besides the potential, the BRICS
also offers a framework for the two Asian members to join hands in various
to building a new industrial chain centering Quad members, better integrating
into the well-developed regional industrial chain is clearly a more practical
path for the largest South Asian economy.
Delhi should reconsider its role in the global system, and instead of obsessing
with populism which hinders the growth of its industries, better connecting
with the Chinese industrial chains may be the right choice for the country's
long-term economic development
The author is director of Institute of Bay
of Bengal Studies with Shenzhen