Trade war: India’s aim of replacing China as industrial power is unrealistic, says Chinese media
Beijing, Nov 28: India's goal of making gains from the ongoing trade dispute between the US and China is "likely prove to be pie in the sky", China's Global Times website said on Tuesday, November 27. It said the reason is India is not ready to take advantage of such opportunity.
The report cited India's Commerce and Industry Minister Suresh Prabhu saying in an interview, as cited by Bloomberg on Monday (November 26) that India will focus on boosting exports to the US and other global markets as Chinese shipments become "unattractive" amid the tiff between China and the US.
"The minister revealed that New Delhi is focusing on items including auto parts, chemicals and electrical equipment, after the world's two largest economies slapped duties on each other's goods," the Global Times report said.
"This apparently laid bare New Delhi's plans to turn Beijing's trade tussle with Washington into an opportunity to get a bigger slice of the global trade pie. India's share of world exports stood at 1.68 per cent in 2017, according to WTO statistics, compared with China's 12.77 per cent."
'Make in India can't overtake Made in China in US market'
The article then went on to say that even though India is eager to catapult itself into a trade power, it is "overlooking a bleak reality -- there is little chance of "Make in India" overtaking "Made in China" in the US market".
It also said while US merchandise imports from India totalled $48.6 billion last year, imports from the Chinese mainland were $505.5 billion, according to American trade statistics.
The US wants to relocate the supply chains it requires to make diverse products but it is unlikely that India or any other nation can fill China's empty shoes in terms of trade size.
It said India's industrial capabilities have to travel a long way before matching China's manufacturing prowess.
'Almost a mission impossible for New Delhi'
"It's not likely that attracting one or two companies to manufacture in India will quickly produce what the US wants. What's needed are complete production systems, almost a mission impossible for New Delhi at present," the report said.