Receding economy of China will help India in the global market as country’s export strength have always relied on qualitative superiority of products while China is largely associated with poor quality goods. “Yes, China receding will help us but it is important to know that the India’s export strength have always relied on qualitative superiority of our products. So, we always looked at high end products, which have international standard like in pharmaceuticals, automotive sectors and textile,” Commerce and Industry Minister Nirmala Sitharam told The Pioneer.
The Chinese economy is looking pretty shaky these days . It grew 7.4 per cent in 2014 the slowest pace in 24 years signaling an end to its scorching pace of growth for over three decade and the Commerce Minister expects that it will help Indai in the global market. According to World Bank and the International Monetary Fund (IMF), Indian economy will soon outpace the Chinese one. And it could see a continuation of the bull run in the Indian stock markets.
“China receding will also help us because the flooding of poor quality goods probably will recede and their export may suffer because the cost of production is going up,” she said. The annual growth of 7.4 percent in 2014 is the slowest since 1990, when China faced international sanctions in the wake of the 1989 Tiananmen Square massacre. Until 2010, China had maintained an average growth rate of more than 10 per cent for over 30 years. Its economy slowed to grow 7.7per cent in 2012 and 2013.
To counter the slowdown, China adopted measures aimed at containing financial vulnerabilities and unwinding excess capacity including in construction, shipping, and renewable energy sectors and, at the same time, stemming a slowdown. Actions to rein in credit growth have slowed the real estate market and investment while dampening growth, especially in early 2014.
While talking about issues discussed with the United States Commerce Secretary Penny Pritzker, she said, “We have discussed whole lot of issues like how we will be able to have greater market, identify the sectors that can attract investment and technology.” “We have also invited the Americans to have a look at the policy and invited inputs from them on the draft policy,” she added.
IPR protection was one of the major issues that was discussed between the two countries in the just-finished three-day state visit of President Barack Obama. A detailed announcement is expected to be made after the Budget session that will begin next month. She revealed that senior officials from both sides will meet to discuss and identify the sectors that can attract investment and technology. “officials will sit and identify sectors where priority investments can come in,” the minister told reporters after the meeting with the US commerce secretary.
The Government is likely to set up a task force to usher in investments and identify sectors that have the possibility to attract inflow of funds from the US. “A task force will certainly help, especially to identify sectors and areas that need to be prioritized, so investments can flow in,” she further added. American side raised the issues related with taxation regime of the country. India has attracted $13.28 billion during April 2000 and November 2014 from the US.