India Should Attract Chinese Firms to Manufacture Locally Like Apple: CEA Nageswaran
Chief Economic Adviser V Anantha Nageswaran emphasized that India should attract Chinese firms to relocate manufacturing to India to reduce dependency on China. He highlighted that import substitution alone cannot reduce this dependency, and investment-led strategies are critical. Using the Apple model in India as an example, he advocated incentivizing Chinese companies exporting to India to set up local production bases and increase domestic value addition.
Chief Economic Adviser V Anantha Nageswaran discussed at the SBI Banking and Economics Conclave in Mumbai that India's dependence on China mainly comes from intermediate and capital goods essential to production, which are harder to replace than finished goods. He stressed that reducing this reliance cannot be achieved merely through import substitution but requires attracting foreign manufacturing investments. Nageswaran pointed to India's experience with Apple relocating manufacturing to India, which has improved domestic value addition, as a model that could be extended to other sectors. The strategy involves inviting Chinese companies currently operating in China—and exporting to India or globally—to establish production bases within India. This approach aligns with the Economic Survey 2023-24’s focus on supply chain diversification and capitalizing on the China Plus One strategy. Encouraging such investment-led manufacturing relocation could help India mitigate import dependence on China and boost its manufacturing sector domestically.
