India has made “signals” indicating a desire to improve economic relations with its neighbor China, but concrete steps to reduce protectionist measures over its manufacturing sector are necessary, according to Global Times in an article published July 17. The two countries’ balance of trade is heavily weighted in favor of China now, and India’s manufacturing sector is in need of higher technology investment in order to increase its role in India’s economy, the Chinese publication said.
Recently, among other signs of potential for a general improvement of relations, a member of India’s Economic Advisory Council, Rakesh Mohan, proposed that India loosen up on protectionism and seek Chinese investment in manufacturing, a strategy which would, Mohan said, increase India’s exports and create more jobs. In March, there had already been a report in Bloomberg that India had approved relaxation of rules for investment from “neighboring countries,” apparently aimed at China. The Global Times article is strongly encouraging more such concrete steps.
