look news india
An economic survey released by the government said that if China's foreign direct investment in India increases, it could help increase India's participation in the global supply chain and also increase India's exports.
India wants to expand its participation in the global supply chain. This requires attention to the economic success and strategies of East Asian countries. For this, two types of strategies have been given special importance. One is to reduce the cost of doing business and the other is to facilitate foreign investment. India has two options to take advantage of the China Plus One strategy. The option is to join the Chinese supply chain or increase FDI from China.
Need to increase FDI from China
Finance Minister Nirmala Sitharaman said that if America wants to increase exports, then emphasis will have to be laid on increasing FDI from China. Increasing FDI can be more beneficial instead of relying on trade. One reason for this is that China is India's major import partner. On the other hand, the trade deficit with China is increasing. America and European countries are moving away from China for its immediate sourcing. Therefore, it is advisable for Chinese companies to increase investment in India and export to other markets if they import from China and re-export with minimum value addition. Currently, government approval is required to get FDI from China.