Indian External Affairs Minister, Subrahmanyam Jaishankar, has stated that India needs to stop looking for a “China fix” and instead focus on building its own domestic manufacturing supply chain. Speaking at an event to launch the book “Made In India” by the country’s G20 Sherpa, Amitabh Kant, Jaishankar said that Indian growth cannot be built on Chinese efficiency, and that the country needs to create its own domestic vendor chain to take the economy to a different level.
The remarks come against the backdrop of the military standoff with China on the Line of Actual Control (LAC), which has taken bilateral ties to a six-decade low. Despite this, bilateral trade between the two countries has continued to boom, with data issued by China’s customs department in January showing that trade between the two countries in 2022 was worth $135.98 billion, up by 8.4% over $125 billion in 2021.
Jaishankar highlighted the government’s production-linked incentives (PLI) initiative, which is aimed at energising the economy and motivating businesses to believe “it is possible to manufacture in India.” He emphasized that businesses need to “think in India” and devise their own solutions, and that opening up the economy and globalization should not lead to deindustrializing the country.
Jaishankar also stressed the need for a level playing field in the country, and that other businesses should not be allowed to enjoy advantages in India at the expense of Indian businesses. “Every country must support its manufacturers and businesses,” he said.
In his book, Kant looks at the history of the past 75 years, from the point where India accounted for 24% of global GDP when it was colonised by the British to its share of global GDP falling to about 5% by the time it gained independence. He emphasized that the private sector has to be the wealth creator and that no country in the world has grown on the back of the public sector. “The government has to be a facilitator, a catalyst, and has to work on education, health and nutrition and bring in the right policy framework,” he said.
Kant further added that India needs to fire on all cylinders, not merely in services, but also in manufacturing, agricultural productivity, and urbanisation for it to grow on a large scale over a long period of time. He emphasized that the government needs to retreat in a vast range of areas and that the private sector must flourish in India.
Overall, Jaishankar’s comments highlight the need for India to focus on building its own domestic manufacturing supply chain instead of relying on Chinese efficiency. The government’s PLI initiative is a step in this direction, and businesses need to think in India and devise their own solutions. Kant’s book emphasizes the need for the private sector to be the wealth creator and for the government to be a facilitator and catalyst in creating the right policy framework. India needs to fire on all cylinders in services, manufacturing, agricultural productivity, and urbanisation to grow on a large scale over a long period of time.
