India Ramps Up Manufacturing Push To Bridge Trade Gap With China
Date
5/13/2024 2:16:07 PM
(MENAFN- KNN India) New Delhi, May 13 (KNN) In the last decade, bilateral trade between India and China has seen a significant increase of 90.14 per cent, growing at an average yearly rate of 12.87 per cent.
In 2022, the overall trade crossed USD 100 billion for the second consecutive year, reaching USD 136.26 billion - an 8.47 per cent year-on-year rise.
However, the trade deficit with China stood at a huge USD 101.28 billion as India's imports from China witnessed a major surge.
To reduce this risk exposure, the Indian government has been making efforts to ramp up domestic manufacturing in critical areas.
"We neglected manufacturing for too long and didn't support our manufacturers enough, especially SMEs," said External Affairs Minister S. Jaishankar.
He cited initiatives like 'Make in India' and Production Linked Incentive schemes aimed at boosting local manufacturing.
Jaishankar dismissed critics who doubted India's manufacturing capabilities, saying the government is rapidly modernising infrastructure to enhance competitiveness. He expressed optimism about India's future driven by the talent of its youth.
The trade imbalance has prompted India to prioritise self-reliance in manufacturing as it aims to de-risk its economic engagement with China gradually.
(KNN Bureau)
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