Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
February 23, Thursday 2017 4:05 AM       

       HEADLINES: Goon hunt: Puthen Palam Rajesh arrested; KAAPA invoked                                              Theyyam artiste falls down from coconut tree (video)                                              Major fire at Kozhikode Sweetmeat Street                                              Court remark: Vigilance’ decision turns controversial                                              Kannur lobby behind attack on actress: M T Ramesh                                              Azhar's actions well-documented: India on China's proof demand                                              India, China hold strategic dialogue                                              It's not right time to pass judgment on my captaincy: Kohli                                              Sehwag predicts 3-0 or 3-1 series win for India over Australia                                              Kaumudi Facebook
       WORLD Next Article: 'La La Land' sweeps Golden Globes, Streep slams Trump  
       'Naive for India to tilt towards US in China-US trade war'
 
         Posted on :19:38:32 Jan 10, 2017
   
A A
       Last edited on:19:38:32 Jan 10, 2017
         Tags: 'Naive for India to tilt towards US in China
 
BEJING: It would be "naive" for India to "tilt" towards the US in the "trade war" between Beijing and Washington under Donald Trump's administration, a state-run Chinese daily warned today amid concerns that expansion of manufacturing sector in India could dent Chinese exports.
 
"It would be naive for India to assume that its economy will boom if it draws closer to the upcoming Trump administration amid a pending trade war between Beijing and Washington," an article in Global Times said. "OverestimatingUS-India economic ties may mislead India and send it down the wrong path for economic development. New Delhi needs to be realistic in terms of growth," it said.
 
"Instead of tilting toward the US, it should focus on developing its manufacturing industry and integrating itself into the global supply chain to expand exports to narrow its trade deficits with major trading partners and create jobs to generate growth," it said.
 
The article hit out at the weekend Assocham India report stating that India is likely to be harmed by a trade war between China and the US and New Delhi must be proactive to ensure that it is "on the right side of the upcoming US administration; or else the impact could be on the Indian services exports to the American firms". "Assocham's message that cautions being dragged into a US-China trade war seems to suggest that New Delhi should lean toward Washington to avoid being implicated and be ready to reap economic gains from a growing alliance with the US.
 
"While this observation appears to be pragmatic, it is also near sighted and may risk distracting India from a better path for economic growth," it said. "The weight of economic ties between China and the US is heavier than those between India and the US. Bilateral trade between China and the US reached USD 558 billion in 2015 while trade between India and US was about USD 109 billion. "It would be self-deceptive to believe that the US needs India more than it does China," it said. 
The article argued that the problem with the Indian economy is that its manufacturing industry is less competitive than China's, which means India imports more than it exports. "China's exports to India reached USD 58.24 billion in 2015 while imports from India hit USD 13.38 billion, resulting is a trade deficit with China of USD 44.86 billion," it said.
 
India officially put its trade deficit with China in 2015 at USD 51 billion. This year it was expected to grow as Indian exports have reportedly fallen further. "Further, India runs trade deficits with most of its top trade partners. To bridge these trade deficits, India needs to develop its manufacturing industry and produce more manufactured goods," it said.
 
"Only by integrating itself into the global supply chain can India boost exports and drive growth. To achieve that, the best way is to work with a manufacturing powerhouse like China and develop its manufacturing capacity to become an integral part of the Asian supply chain. This would allow India to attract more foreign investment and open further to the outside world," it said.
 
"With a large working-age population, many of whom are employed in unorganised sectors, India has a greater need to develop its manufacturing industry to tap the potential of its demographic dividend and lift a vast number of people out of poverty just as China did and still is doing," it said.
 
"India needs to realise that there is no short cut when it comes to economic development. Failing to realise this, India risks setting its economy on a dead-end route," the article warned. 
A A
       WORLD
Next Article: 'La La Land' sweeps Golden Globes, Streep slams Trump
 
 
WORLD HEADLINES
India, China hold strategic dialogue  
Muslim-Americans raise USD 55,000 to repair Jewish cemetery  
Trump's immigration plans could impact 3 lakh Indian-Americans  
India, China hold strategic dialogue  
Hafiz Saeed can pose a serious threat to Pak: Defence Minister  
7 killed, 14 injured in suicide blast outside Pak court  
Bodies of 74 migrants wash up on Libya beach: Red Crescent  
Pak cancels licenses of weapons issued to Saeed and his aides  
Pak army rejects report on Bajwa's 'read book on India' advice  
South Sudan declares famine in parts of war-torn country  
US Defense Secretary Mattis: No plan to seize Iraqi oil  
Pak shrine victims' bodies desecrated, Sindh CM vows action  
Don't believe media, all is well with White House: Trump  
Pakistan lists Saeed under anti-terrorism act  
Pak crackdown after Sufi shrine blast; 39 militants killed  
Need 'solid evidence' to back Azhar ban at UN: China  
Samsung heir arrested in corruption probe  
Sundar Pichai responds to 7-year-old's Google job application  
Displaced people of Syria's 'beehive' villages dream of return  
Pak most dangerous country for world: Former CIA official  
Hafiz Saeed asks Pak gov't to remove his name from ECL  
Chinese media warns India against playing Taiwan card  
North Korea slams UN condemnation of missile launch  
Six killed in suicide attack in northwestern Pakistan  
Record 27 US Congressmen travelling to India this month  
 
Do you suspect any actor's role in a recent attack against an actress?
Yes
 
No
 
Don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy