• Latest
  • Trending

Despite worsening relations, a Chinese economist argues for stepped up Chinese investment in India

October 28, 2016
Sri Lankan Muslim Community invites all to join them for Iftar

Sri Lankan Muslim Community invites all to join them for Iftar

March 28, 2023
Exchange Rate

Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

March 28, 2023
Role of Diasporas in the contemporary world

Role of Diasporas in the contemporary world

March 28, 2023
Three foreign firms to enter Sri Lanka’s fuel market

Three foreign firms to enter Sri Lanka’s fuel market

March 27, 2023
Sri Lanka’s anti-terrorism bill has significant flaws  

Sri Lanka’s anti-terrorism bill has significant flaws  

March 27, 2023
Gold. Image credits - Jingming Pan / Unsplash

Gold prices in Sri Lanka

March 27, 2023
India - Sri Lanka

Travel to India in 50$?

March 27, 2023
IPL2023

BCCI to ban Sri Lanka and Bangladesh players from IPL?

March 27, 2023
Manchester United. Image credits - Javid Naderi / Unsplash

Qatar’s Al Thani submits new US$6 billion bid for Manchester United

March 26, 2023
Permission granted for anyone to sell goods on the roadside during festive season – Minister

Permission granted for anyone to sell goods on the roadside during festive season – Minister

March 26, 2023
Towards a sustainable Sri Lankan foreign policy

Towards a sustainable Sri Lankan foreign policy

March 26, 2023
UNHRC periodic report on Lanka wants executive power clipped

UNHRC periodic report on Lanka wants executive power clipped

March 25, 2023
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact
Tuesday, March 28, 2023
No Result
View All Result
NewsIn.Asia
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Sri Lankan Muslim Community invites all to join them for Iftar

    Sri Lankan Muslim Community invites all to join them for Iftar

    Exchange Rate

    Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

    Role of Diasporas in the contemporary world

    Role of Diasporas in the contemporary world

    Three foreign firms to enter Sri Lanka’s fuel market

    Three foreign firms to enter Sri Lanka’s fuel market

    Sri Lanka’s anti-terrorism bill has significant flaws  

    Sri Lanka’s anti-terrorism bill has significant flaws  

    Gold. Image credits - Jingming Pan / Unsplash

    Gold prices in Sri Lanka

    India - Sri Lanka

    Travel to India in 50$?

    IPL2023

    BCCI to ban Sri Lanka and Bangladesh players from IPL?

    Permission granted for anyone to sell goods on the roadside during festive season – Minister

    Permission granted for anyone to sell goods on the roadside during festive season – Minister

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    India - Sri Lanka

    Travel to India in 50$?

    Manchester United. Image credits - Javid Naderi / Unsplash

    Qatar’s Al Thani submits new US$6 billion bid for Manchester United

    Ramadan. Image credits - Andrew Lancaster / Unsplash

    Ramadan 2023: Fasting hours and iftar times around the world

    Foreign Ministry spokesperson Wang Wenbin

    China calls on Western lenders to ease debt pressure on developing countries

    Canada sees record population growth in 2022 from immigration

    Canada sees record population growth in 2022 from immigration

    Ukraine

    IMF staff reaches agreement with Ukraine for $15.6 bln program

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Manchester United. Image credits - Javid Naderi / Unsplash

    Manchester United is for sale, who could buy the world-famous club?

    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp for iOS gets text detection feature: What is it and how to use

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Watch: Oscar winning song Naatu Naatu

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Indian song ‘Naatu Naatu’ from ‘RRR’ wins Oscar award for best song

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Naatu Naatu: The RRR song primed for Oscar history

    Keanu Reeves

    11 of the best films to watch in March

    Netflix. Image credits - Souvik Banerjee @rswebsols / Unsplash

    Netflix cuts prices for subscribers in more than 30 countries

    Backstreet Boys

    Backstreet Boys to perform in India after 13 years

    Roald Dahl books

    Roald Dahl books rewritten to remove language deemed offensive

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Happy. Image credits - Lesly Juarez / Unsplash

    The world’s happiest countries for 2023

    Nepal. Image credits - Toomas Tartes / Unsplash

    Nepal bans solo trekkers throughout the country

    Air quality drops to ‘unhealthy’ level in Colombo

    Air quality drops to ‘unhealthy’ level in Colombo

    Scientists discover enzyme that turns air into electricity, providing a new clean source of energy

    Scientists discover enzyme that turns air into electricity, providing a new clean source of energy

    Toblerone chocolates

    Toblerone chocolates to lose “Swissness” criteria

    Significant increase of overweight and obese individuals in Sri Lanka

    Significant increase of overweight and obese individuals in Sri Lanka

    Vistara airlines to resume operations to Sri Lanka

    Vistara airlines to resume operations to Sri Lanka

    International airlines suspend some US flights over 5G uncertainty

    Saying no to inflight meals can help our planet

    Sri Lanka

    Where are 2023s tourists to Sri Lanka coming from?

    Hazardous health: Jaffna’s growing waste crisis

    Hazardous health: Jaffna’s growing waste crisis

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp for iOS gets text detection feature: What is it and how to use

    Nokia

    Nokia changes iconic logo to signal strategy shift

    Selena Gomez and Kylie Jenner

    Selena Gomez dethrones Kylie Jenner on Instagram

    Facebook. Image credits - Solen Feyissa @solenfeyissa

    Facebook & Instagram to test monthly subscription service priced at $11.99

    Whatsapp. Image credits - AARN GIRI / Unsplash

    New features introduced in Whatsapp’s latest update

    Microsoft has announced a new version of Bing

    Microsoft unveils new Bing with ChatGPT powers

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Sri Lankan Muslim Community invites all to join them for Iftar

    Sri Lankan Muslim Community invites all to join them for Iftar

    Exchange Rate

    Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

    Role of Diasporas in the contemporary world

    Role of Diasporas in the contemporary world

    Three foreign firms to enter Sri Lanka’s fuel market

    Three foreign firms to enter Sri Lanka’s fuel market

    Sri Lanka’s anti-terrorism bill has significant flaws  

    Sri Lanka’s anti-terrorism bill has significant flaws  

    Gold. Image credits - Jingming Pan / Unsplash

    Gold prices in Sri Lanka

    India - Sri Lanka

    Travel to India in 50$?

    IPL2023

    BCCI to ban Sri Lanka and Bangladesh players from IPL?

    Permission granted for anyone to sell goods on the roadside during festive season – Minister

    Permission granted for anyone to sell goods on the roadside during festive season – Minister

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    India - Sri Lanka

    Travel to India in 50$?

    Manchester United. Image credits - Javid Naderi / Unsplash

    Qatar’s Al Thani submits new US$6 billion bid for Manchester United

    Ramadan. Image credits - Andrew Lancaster / Unsplash

    Ramadan 2023: Fasting hours and iftar times around the world

    Foreign Ministry spokesperson Wang Wenbin

    China calls on Western lenders to ease debt pressure on developing countries

    Canada sees record population growth in 2022 from immigration

    Canada sees record population growth in 2022 from immigration

    Ukraine

    IMF staff reaches agreement with Ukraine for $15.6 bln program

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Manchester United. Image credits - Javid Naderi / Unsplash

    Manchester United is for sale, who could buy the world-famous club?

    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp for iOS gets text detection feature: What is it and how to use

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Watch: Oscar winning song Naatu Naatu

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Indian song ‘Naatu Naatu’ from ‘RRR’ wins Oscar award for best song

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Naatu Naatu: The RRR song primed for Oscar history

    Keanu Reeves

    11 of the best films to watch in March

    Netflix. Image credits - Souvik Banerjee @rswebsols / Unsplash

    Netflix cuts prices for subscribers in more than 30 countries

    Backstreet Boys

    Backstreet Boys to perform in India after 13 years

    Roald Dahl books

    Roald Dahl books rewritten to remove language deemed offensive

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Happy. Image credits - Lesly Juarez / Unsplash

    The world’s happiest countries for 2023

    Nepal. Image credits - Toomas Tartes / Unsplash

    Nepal bans solo trekkers throughout the country

    Air quality drops to ‘unhealthy’ level in Colombo

    Air quality drops to ‘unhealthy’ level in Colombo

    Scientists discover enzyme that turns air into electricity, providing a new clean source of energy

    Scientists discover enzyme that turns air into electricity, providing a new clean source of energy

    Toblerone chocolates

    Toblerone chocolates to lose “Swissness” criteria

    Significant increase of overweight and obese individuals in Sri Lanka

    Significant increase of overweight and obese individuals in Sri Lanka

    Vistara airlines to resume operations to Sri Lanka

    Vistara airlines to resume operations to Sri Lanka

    International airlines suspend some US flights over 5G uncertainty

    Saying no to inflight meals can help our planet

    Sri Lanka

    Where are 2023s tourists to Sri Lanka coming from?

    Hazardous health: Jaffna’s growing waste crisis

    Hazardous health: Jaffna’s growing waste crisis

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp for iOS gets text detection feature: What is it and how to use

    Nokia

    Nokia changes iconic logo to signal strategy shift

    Selena Gomez and Kylie Jenner

    Selena Gomez dethrones Kylie Jenner on Instagram

    Facebook. Image credits - Solen Feyissa @solenfeyissa

    Facebook & Instagram to test monthly subscription service priced at $11.99

    Whatsapp. Image credits - AARN GIRI / Unsplash

    New features introduced in Whatsapp’s latest update

    Microsoft has announced a new version of Bing

    Microsoft unveils new Bing with ChatGPT powers

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
NewsIn.Asia
No Result
View All Result
Home Around South Asia China

Despite worsening relations, a Chinese economist argues for stepped up Chinese investment in India

Editor by Editor
October 28, 2016
in China, India
Reading Time: 3 mins read
2 0
A A
Share on WhatsApp

Ge Cheng/Global Times

The recently concluded eighth BRICS Summit in Goa has again thrust India into the spotlight, giving the world a breath of fresh air amid almost endless populist fights haunting the US and Europe. 

Since 2014, India’s domestic reforms have come to fruition and its economic growth has been impressive, thanks to efforts by Indian Prime Minister Narendra Modi, which include regulating the manners of government employees, eliminating corruption, degeneration and outdated conventions as well as addressing deep-rooted social and economic problems. 

ADVERTISEMENT

Nevertheless, in light of the robust momentum in India’s economy, there has been contention in China over whether Chinese businesses should shift their manufacturing into the South Asian country. Those opposing the shift argue that the relocation of manufacturing operations will inevitably prompt Indian companies to outpace their Chinese counterparts in producing low- to medium-range goods, and consequently force Chinese businesses to compete against companies from the US, Japan and Europe in the high end of the value chain. In the worst-case scenario, China might be left in the precarious position of being incapable of competing against its Western rivals in high-end manufacturing while also being challenged by a dominant India in he lower end. However, I would argue that this anxiety over Chinese investment in India is overblown. Rather, there are many reasons why investing in India could boost the clout of Chinese capital in the Indian economy. 

First, India faces obstacles in pushing for further economic reforms. Shortly after taking office, Modi launched the Make in India initiative to stimulate the country’s manufacturing industry. Under the plan, multinational corporations are being encouraged to move production operations into India, notably in 25 key industries that include transport, mining, electronics, chemicals and food processing. A raft of additional policies that are envisioned to boost India’s manufacturing sector have also been announced. For example, the Modi government has revised the rules in regards to import tariffs, doubling tariffs levied on finished goods while eliminating tariffs on imported components. Additionally, the administration has scrapped the Planning Commission and put an end to fiscal subsidies for coal and natural gas, among other measures. But the new government has yet to make breakthroughs in areas including agriculture, electric power and the labor market. 

China's Huawei Technologies has invested US$ 170 million in a research and development center in India
China’s Huawei Technologies has invested US$ 170 million in a research and development center in India

Although Modi’s Indian People’s Party currently controls the majority of seats in the House of Commons, the Opposition still holds of the upper house which has been an obstacle for acts related to taxation and foreign investment the government has tried to push through. Besides, factoring in India’s system of government in which power is weighed toward the states, the Indian People’s Party and its allies control only a fourth of the country’s 29 states, adding to difficulties in implementing reforms

Second, India’s growth numbers might be inflated. In the 2015-16 fiscal year, India’s economy grew 7.6 percent, outpacing China for the first time and becoming the fastest-growing major economy globally. Its fiscal deficit as a percentage of the GDP also fell to 4 percent from the previous year’s 4.5 percent, while inflation dropped to 5.4 percent from 10 percent in 2014. The country’s deficit under the current account shrank substantially over the past year, and its international reserves also hit record levels. Behind the brilliant figures, however, were the dramatic drop in oil prices between 2014 and 2016 and a 2015 change to India’s GDP calculation method.  

Third, investing in India is an inevitable choice of capital, which essentially pursues profits. The accelerated flows of foreign direct investment (FDI) into India do not seek to make contributions to India, but instead are allured by the promising profit prospects enabled by the economy’s growth and an array of favorable policies. Based on realist thoughts, India is simply striving to improve its investment environment and revise rules and regulations. The Modi government also updated FDI rules, raising the foreign investment cap to 49 percent from 26 percent, except for in state-owned banks and state-owned listed companies. The threshold limit for automatic approval has also been loosened to 500 billion rupees ($7.4 billion) from 300 billion rupees. If India can continue its current growth momentum, quicken (or at least maintain) its current pace of reform, the Chinese capital that has entered the Indian market is likely to reap fat gains in the future, which is a de facto win-win for all parties. 

Fourth, China can’t effect whether or not its low-end manufacturing will be overtaken by India. The rise of various emerging economies after World War II has shown that the economic takeoff pivoting around manufacturing requires external capital, foreign technologies, massive orders in the US and European markets, a competitive labor force in the emerging country as well as a relatively stable international environment. China neither controls nor monopolizes these necessary components. In fact, the rapid growth in India’s manufacturing sector has thus far had little to do with Chinese capital. 

In other words, China doesn’t have the capability to limit India’s manufacturing development. What China is capable of is preventing Chinese investment from capitalizing on India’s admired growth outlook, indisputably an unwise choice.

Ge Cheng is an assistant research fellow at the National Institute of International Strategy of the Chinese Academy of Social Sciences

Related Posts

Role of Diasporas in the contemporary world
China

Role of Diasporas in the contemporary world

March 28, 2023
India - Sri Lanka
Around South Asia

Travel to India in 50$?

March 27, 2023
IPL2023
Around South Asia

BCCI to ban Sri Lanka and Bangladesh players from IPL?

March 27, 2023
Milinda Moragoda meets Indian Minister of Road Transport and Highways Gadkari
Development news

Milinda Moragoda meets Indian Minister of Road Transport and Highways Gadkari

March 25, 2023
The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages
Arts

The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

March 25, 2023
Rahul Gandhi disqualified from parliamentary membership
India

Rahul Gandhi disqualified from parliamentary membership

March 25, 2023
  • Electricity

    Power cut schedule for today in Sri Lanka: Uninterrupted power supply

    60151 shares
    Share 24083 Tweet 15029
  • Registration open for National Fuel Pass

    6636 shares
    Share 2692 Tweet 1644
  • Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

    1797 shares
    Share 725 Tweet 447
  • WATCH : Yohani’s first live performance in India

    789 shares
    Share 328 Tweet 192
  • Power interruption schedule released: Check your area power cut time

    742 shares
    Share 320 Tweet 176
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact

© 2022 All rights reserved.

No Result
View All Result
  • Home
  • Around South Asia
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
  • Around The World
  • Breaking News
  • Business
    • Exchange
  • Climate Change
  • Governance
    • Crime
    • Diplomacy
    • Defense
    • Human Rights
    • Politics
    • Strategic Affairs
  • Lifestyle
    • Books
    • Entertainment
      • Arts
      • Cinema
      • Gaming
      • Music
      • Movie
      • Series
      • TV
    • Health
    • Fashion
    • Food
    • Travel
  • Culture
    • Ethnicity
    • Gender
  • Development news
  • Economy
  • Education
  • Environment
  • Coronavirus
  • History
  • National
  • Offbeat
    • Media
    • Music and arts across South Asia
  • Recommended
    • Headlines
    • Highlights
    • Top Picture
    • Top Story
  • Religion
  • Science
  • Sports
    • Football
    • Cricket
      • LPL
      • IPL
    • Tennis
    • Formula 1
    • NBA
  • Tech
    • Instagram
  • United Nations
  • Weather
  • World
    • Japan
    • Russia
    • United States
  • Videos

© 2022 All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

eskisehir escort -

https://www.vudols.com/

- Sağlık Personeli - mersin escort - Antalya korsan taksi