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Can India decouple itself from Chinese manufacturing? -Ananth Krishnan

-The Hindu

India faces challenges linked to infrastructure and skill sets; and its policies are unpredictable

The border clashes with China and the COVID-19 pandemic have reignited questions about India’s dependence on Chinese manufacturing. India’s imports from China in 2019-2020 reached $65 billion, out of $81 billion two-way trade. Is the pandemic, as Union Minister Nitin Gadkari said last month, a “blessing in disguise” for Indian manufacturing? Will companies be able to move deeply integrated supply chains out of China? And if so, will they choose India? In a discussion moderated by Ananth Krishnan, Biswajit Dhar, and Amitendu Palit, discuss India’s options and the challenges ahead in India’s efforts to boost manufacturing at home.


Edited excerpts:

* It has been more than five years since India launched the Make in India initiative. If we look at India’s dependencies on China as one barometer, how would you assess where we are now?

Biswajit Dhar: I think that the Make in India initiative was a good opportunity for us to get our manufacturing sector back on track. I don’t think that we have taken advantage of what we had actually planned. In the past five years, what we have seen is that the dependency on China has actually gone up. It’s a very strange situation that we have today, that India is exporting a lot of raw materials and intermediate products, and importing finished products from China. And, of course, certain key intermediates such as active pharmaceutical ingredients. So I don’t think we are really on a strong footing because our dependence on China is huge. This needs to change significantly, if we are to think in terms of this whole discussion that is going on if there is to be relocation of industries here in India.

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