niti aayog member Arvind Virmani has said that India's manufacturing sector will grow by allowing Chinese companies to invest and manufacture goods in india rather than importing goods from neighboring countries. The Economic review was tabled in parliament on July 22. The economic report said that Chinese companies should be allowed to invest directly in india to develop the domestic manufacturing sector. niti aayog member Arvind Virmani, who has given an interview to PTI in this regard, says that there is a huge change in the way an economist looks at this matter. We are going to import goods from china for 10 years, 15 years.
Why do we need to import it? If Chinese companies are allowed to invest in india then those products will be manufactured in India. He said that this would help in the development of India. American and european countries are planning to reduce the import of goods from china, he suggested that we should take advantage of this. If we stop importing from neighboring countries and allow Chinese companies to invest in india, the goods will be manufactured in India. From here they can be exported to the US and european markets, he says. He expressed hope that the manufacturing sector in india will grow and the export sector will also grow. He says we can easily increase India's exports to the US by allowing FDI from China. From april 2000 to march 2024, china accounted for only 0.37% of the total FDI recorded in India. china ranks 22nd in that category. Although india has received minimal FDI from china, trade between the two countries has grown manifold.
Bilateral trade is estimated to be USD 118.4 billion by 2023-24. Also, India's exports to china rose 8.7% to USD 16.67 billion in the last financial year. For india, iron ore, cotton yarn, handloom, spices, fruits and vegetables, and plastic are major contributors to China's exports.
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