Can C be Spereted from I.
C & I
Can C can be separated from I.Do you want to know ?
Is it possible? Interdependent India on China 2020 & beyond !!!
Needs to be carefully considered Strategic move rather than an emotional move.
Some Facts:
Trade Imbalance between China & India Export $ 14.4 B & Import $ 57.9 B) between April 2019 and January 2020.
What do they think will happen when Chinese products are replaced by Korean or Japanese ones? China's total exports in a year are about $2.5 trillion.
India accounts for 3 % of that. China also has $3 trillion in foreign exchange reserves and a large trade surplus.
So who are we hurting? Some sellers of phone instruments, perhaps.
Chinese investment in India has surged from $1.6 B in 2014 to $ 8 B in 2017.
The major contributors of Electronics $17,041 Mn Machinery $13,727 Mn & Chemical $13,506 Mn)
Key industries dependent on imports from China Bulk Drug and intermediaries (68%) Electronics (43.2%), Garments (27%) & Auto Ancillaries 8.6%.
Consumer goods can be replaced quickly in India and the problem will be capital goods.
China has designed equipment in such a way that such key components have to be made in India & Everything must be fit.
75% of India Power plants use Chinese Equipment Such as BTG are mostly prefered against homegrown BHEL on prices and delivery concerns in the past.
80% of Solar Projects in India use Chinese Equipment .of 40,000 Thermal Power built over the last decade most equipment as Boiler, Turbines, & Generators came from China.
India hooked to Chinese made phones.
Xiaomi (30%) Vivo (China) 17% Real me 14% Oppo 12% China BBK Electronics has captured more than 73% Market share in India with its various brands together.
With the above data, the above industry can't survive without China unless credible options emerge from Korea/Japan & homegrown companies.
Investment Owned by China Made In India Xiaomi $1000 Million 7 Factories.OPPO Vivo Plants a/R & D Centres. $600 Million Huawei Global Service Centers $300 Million, Shanghai Motor MG Motor already invested ?3000 Cr & $1 Bn production facility planned by great wall motors in Maharashtra.
Some of
Internet Companies with Chinese investors include Big Basket, Byju’s, Delhivery, Dream 11, Flipkart, Hike, MakeMyTrip, Ola, Oyo, Paytm, Paytm Mall, PolicyBazaar, Quikr, Rivigo, Snapdeal, Swiggy, Uddan, Zomato are somewhere Chinese companies hold a stake.
The Government must not allow China access to strategic markets, like telecom products, because of the possibility of spyware mischief.
Also exclude China from product segments where the quality record is said to have been poor, such as thermal power plant equipment.
And if China is looking for ways to keep out Indian pharmaceuticals or software services, hit back in the same coin.
Even cancel railway/ Fertilizer contracts if project completion is hopelessly delayed, but bear in mind the time taken to get alternative bidders.
Now every country around the world is looking for China's replacement in the phased manner. There is a manufacturing exodus happening out of China & Companies are looking at India as alternative options. India local industry can benefit if the degree of localization in the supply chains of the various China-dependent industries can go up. Manufacturing Cost Index of USA 100, China is 95 & India is at 86 But we become uncompetitive on the logistics cost. (Cost from Exworks Factory to FOB port & from port to importing nation. There is big improvement needed on all India ports on performance & efficiency)
A well laid out stable and long term manufacturing policy along performance-linked sops to boost local manufacturing and exports & phase-wise indigenisation target to build the local industry from scratch is need of the hour
Reducing industrial dependence on China has to be a gradual effort over several years of accelerated indigestion in our backyard before lifting the lever disengaged completely.
In short, aim carefully and don't shoot yourself in the foot.
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