In an interview with Outlook, Anil Bhardwaj, Secretary General, FISME, says China can never ignore India for its growth, and India needs China for its industrial engine to boom. Excerpts:
Which Chinese imports are replaceable by Indian products?
I think replacement or import substation is possible with right policy and infrastructure support in low tech, high volume engineering and electronic goods, and many consumer durables, from electric appliances, lightings, sockets, and LEDs to bathroom fittings and fancy household items. To implement such a policy, each product category requires detailed cost analysis, identification of technological gaps, and assistance to build capacity (and its eco-system like auto parts suppliers). It’s easier said than done.
Can higher duties on Chinese goods help India Inc?
You can’t create local production just by enhancing the duties. It is an important instrument which can be effective, if used judiciously in sync with other interventions like access to technology, finance, establishment of supply chain, and incentives for people to take risk. China used this effectively.
Will there be slowdown in Chinese investments to India?
I would rather let the hot air pass. Nobody comes with six months or a year horizon in mind. China can never ignore India for its growth, and India needs China for its industrial engine to boom. No single country, except India, can offer Chinese companies gigantic growth opportunities in Infrastructure, telecom and railways.