11/12/2019 - Indian Economy

Kindly review...thank you...

KEY POINTS

·        Imports from China have curbed capacity creation and utilisation. This malaise must be addressed for economic revival

·        China is now the proponent of free trade and globalisation at Davos. The OBOR and the RCEP are being promoted by China, which is on its way to becoming a superpower.

·        It is useful to have a larger historical perspective, as India confronts a critical juncture. In the run-up to the RCEP negotiations, hardly any producer group in India saw benefits from joining the RCEP.

·        They only saw adverse consequences and asked for carve-outs and protection. The experience of India’s FTAs with Asian countries has shown that the Indian industry has not experienced the anticipated gains.

·        Growing imports of consumer goods, thermal power plants — and now solar panels and exports of primary products like iron ore and cotton — constitute India’s trade with China. All that is imported was being made, and can be made in India.

·        The logic of free trade is for India’s growing demand to be met by China’s excess capacity and India’s inefficient, non-competitive capacities to close down without need for creation of new capacity.

·        India needs to take a hard look at its choices. Creating global competitiveness and doing all that it takes to do so, including abandoning conventional ways of thinking, cannot be delayed.

Please review.

Please review.

Kindly review!!