'Instead of importing, Chinese companies should invest in India', Niti Aayog member Virmani suggested

Niti Aayog member Arvind Virmani says that instead of importing goods from China, if India gets Chinese companies to invest here, then there will be many benefits. This will increase trade as well as promote manufacturing at the local level. Along with this, the benefit of the export market will also be available. He responded to the question of Foreign Direct Investment (FDI) from China during the pre-budget economic survey.

Virmani said that India-China trade is closed, but a lot of imports are happening. If we are going to import some goods for the next 10-15 years, then it is better that we get Chinese companies to invest here and get the goods manufactured here. He said that according to the Economic Survey, America and Europe are now reducing imports from China. In such a situation, instead of importing goods from China, India should encourage Chinese companies to invest here. By this, we can become very strong by exporting the products made by China in India to America and Europe.

Economist Virmani said that we have to first look at the good in every time and look at every category in good times. After this, the trade-off has to be evaluated. He said that India has two options to take advantage of the China Plus One strategy. One is that India joins China's supply chain. The second is to promote FDI from China. Therefore, India will have to make an agreement after continuing imports from China.

He said that focusing on FDI from China is more important to promote India's exports to America. Because India imports the most goods from China and these days India's trade deficit with China is increasing.

After the fierce clash in the Galwan Valley in June 2020, relations between the two countries have deteriorated significantly. This dispute has not been fully resolved yet. India has been saying that its relations with China cannot be normal until there is peace in the border areas. At the same time, India has banned more than 200 Chinese mobile apps like TikTok, We Chat, and UC Browser. Along with this, a big proposal for electric vehicle manufacturing was rejected. However, at the beginning of the year, the Competition Commission of India (CCI) approved the proposed acquisition of a 38 percent stake in MG Motor India Private Limited by Shanghai-headquartered JSW Group.