China should invest in Make in India: Experts

SHANGHAI: Echoing Prime Minster Narendra Modi’s pitch to Chinese investors, academics and scholars have said that business houses from China should grab the opportunity that the ‘Make in India’ campaign offers. But for that to happen, India would have to provide the right kind of business environment, they said.

“For example, in infrastructure, firms (in India) face many challenges like land acquisition, the guarantee for profit and visas for workers,” Liu Xiaoxue, researcher on economics at the Chinese Academy of Social Sciences said.

On the positive side, India’s growth is a big opportunity for Chinese enterprises to capture the market. “India is now more open than before,” Liu said, adding that Chinese companies too need to adapt to the situation in India.

For example, India has strict visa rules for foreign workers. “It is a big challenge for Chinese companies. But they should learn to use the local labour force,” Liu said.

“‘Make in India’ is a golden chance to lure Chinese investment into India. India needs money for infrastructure . Since the opening up of the Chinese economy, Chinese companies have worked on these sectors. They have the skill and the edge,” Huang Shang with Caixin magazine that focuses on economics and finance said. According to Huang, if ‘Make in India’ can take root, it could create solid manufacturing base in India. “India can start producing goods. Like textile. India could begin to export more to China,” Huang said.

Both agreed that the overall “sentiment” of India’s economic potential was positive and many have high expectations that India’s economy could take off soon.