'India should allow migration of China's excess manufacturing'

India should shed its concerns over pollution and allow Chinese industries to shift their excess capacity to it which would be benificial to both countries, state media here said today.

"India may need to carefully think about whether it wants to resist or embrace the migration of China's production capacity, which allegedly involves some investment in heavy polluting industries," an article in the state-run Global Times said.

Referring to reports of China Railway Rolling Stock  Corporation (CRRC) starting operations at its joint venture plant in Haryana to manufacture and repair locomotives, it said, "the partnership is hardly surprising seeing as India has one of the world's largest railway network, creating a huge demand for engines and other railway equipment".

"China's train makers have an advanced production capacity and have been actively looking for cooperation ties in the world. What is odd is that the cooperation between the two countries has only just now come about," it said.

State-run Xinhua news agency reported that the plant was set up with an investment USD 63.4 million and the Chinese side holds 51 percent of the share. The India plant will repair and manufacture railway locomotive engines.

The Global Times article said, "there have been some obstacles restricting Chinese enterprises' access into India, where some people worry that boosting India-China production capacity ties may also bring heavy polluting production into the country".

"But these concerns are unfounded. The venture plant in India will transform CRRC from a company that exports equipment to one that exports advanced production technology that includes more clean and green methods. Further, this move will boost India's rail system and drive tax revenue for the local economy," it said.

"In fact, a considerable part of China's excess production capacity could be conductive in boosting the local economy if they can be transported to India. A large number of Chinese manufacturers have acquired far more advanced technology than some local Indian firms despite those Chinese enterprises suffered problems of overcapacity domestically," the article said.

"India may want to consider offering more opportunities for Chinese manufacturers to invest in the country as both countries could enjoy great potential in production capacity cooperation," it said.