Forget products, attract investments from China to set up factories that can export to the world: Eco Survey
Union Budget and Economic Survey 2024 Live Updates
Economic Survey Highlights: Reading between the lines
Economic Survey on if India can fill mfg void left by China
“Choosing FDI as a strategy to benefit from the China plus one approach appears more advantageous than relying on trade. This is because China is India's top import partner, and the trade deficit with China has been growing. As the US and Europe shift their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export the products to these markets rather than importing from China, adding minimal value, and then re-exporting them,” it stated.
Answering the all-pervasive question on whether China+1 can result in a total movement of trading relations away from China, the survey gave the examples of nations such as Mexico, Vietnam, Taiwan and Korea, which were direct beneficiaries of the US’ trade diversion from China. “Even while these nations increased their share of exports to the US, they also displayed a concomitant rise in Chinese FDI. Therefore, the world cannot completely look past China, even as it pursues China plus one,” it added.
Giving more context, the survey explained how, over the last five years, a seismic change has occurred in the global manufacturing realm, with major multinational companies, including Apple and others, looking to “de-risk” themselves from China, which was traditionally known as the “world's factory”. “This shift is primarily due to disruptions
