Exclusive! Narendra Modi, Xi Jinping Meet: NITI Aayog says India must not open its markets to China any further
Narendra Modi, Xi Jinping Meet: The most interesting fact of the meet is that it has been planned at a time when the two countries are facing jolts from the United States due to its policy of protectionism spanning both jobs and industries. In such a scenario, the biggest challenge for China is to search a big marketplace for its products and India can be one of them.
Narendra Modi, Xi Jinping Meet: Prime Minister Narendra Modi will today, on April 27, 2018, join Chinese President Xi Jinping for an informal summit in the Chinese city Wuhan. Modi landed at Wuhan Airport last night to a grand welcome. Reports suggest that during this visit, the two leaders will be spending most of the time interacting with each other with one-on-one conversations focussing on global, regional and bilateral issues. The informal summit could be a new starting point after their first informal meeting at the Sabarmati Ashram of Mahatma Gandhi in Gujarat in 2014. Both the leaders will have a two-day heart-to-heart summit starting today at Wuhan, a favourite holiday spot of revolutionary leader Mao Zedong.
The most interesting fact of the meet is that it has been planned at a time when the two countries are facing jolts from the United States due to its policy of protectionism spanning both jobs and industries. In such a scenario, the biggest challenge for China is to search a big marketplace for its products and India can be one of them.
But at such a time, NITI Aayog, the policy thinktank of the Government of India, through its report has suggested some big precautionary measures related to India's trade relations with China. The NITI Aayog in its note has said that when the world is moving towards protectionism and the United States is taking stringent steps against China, India must not open its market for China and its goods. It says, opening the Indian market for China will be fatal for the country especially, at a time when the country is lagging behind China in terms of standards and processes.
The NITI Aayog's note also says that our trade deficit with China has increased 13 times in the past one decade. It recommends to review the old Free Trade Agreements and says any slackness in new business agreements will hit our markets. It added that this is the time when China can display its generosity towards India, but the country should be careful with China.
However, people familiar with the development feel that this is a good opportunity for India to take advantage of the pressures that are being exerted on China. It is a time when India can become a part of the Global Value Chain.
Watch this Zee Business video
NITI thinks that during his meeting with President XI, Prime Minister Narendra Modi should emphasize on the fact that India should be turned into a manufacturing hub instead of being a bastion of Chinese goods. He should call for manufacturing partnership wherein China will be manufacturing its goods in India by collaborating Indian companies. This will help in increasing Chinese investment in India, besides creating new job opportunities for Indian youths. In lieu of it, China may seek India's support against protectionism on the global forum.