Jumla for India, jobs for China: Rahul targets govt on 'Make in India'

 He alleged that the imports from China are at an all-time high under the Modi government as it has “destroyed” the medium and small industries and unorganised sector that creates jobs

Congress leader Rahul Gandhi on Friday targeted the Modi government over the issue of jobs, charging that ‘Make in India’ is turning into ‘Buy from China’. He alleged that the imports from China are at an all-time high under the Modi government as it has “destroyed” the medium and small industries and unorganised sector that creates jobs. “JUMLA for India, JOBS for China! Modi Government has destroyed the Unorganised Sector and MSMEs that create the most jobs. Result: ‘Make In India’ is now ‘Buy from China’,” he said on Twitter.

The former Congress chief also shared a 1.30 minute video where it is alleged that the Modi government promised ‘Make in India’, yet it only “buys from China” and there has been a record 46 percent increase in imports from China in 2021, which is the highest ever. In the short video, he also shared excerpts of his speech in Parliament on the issue, where he attacked the government on China. Gandhi and his Congress party have been critical of the government’s response and handling of the border dispute with China and have been demanding strong action on the matter.

Sikkim standoff: China's economic stakes in India is no worry for Beijing

India may hold the promise of a big market for China, but that promise is yet to be fulfilled

 

The sikkim standoff between India and China over a border dispute in the Sikkim region has given rise to speculation over how the latter would respond to the situation. The Chinese leadership has ruled out any talks with India until the Indian troops vacate what it considers to be its territory. In response, the Indian foreign secretary has noted that differences should not become disputes between neighbours.

But the stalemate continues, bringing into sharp focus its impact particularly on China’s economic ties with India. On social media including many WhatsApp groups, a campaign is already on to show how Indians can respond to China by rejecting goods that are produced in that country and sold in India.(economy policy)

It is a campaign charged with nationalistic emotion. But how seriously can such a campaign really impact Chinese exports or investments? To assess that, it is important to look at some numbers on India’s trade with China and the flow of Chinese investments into India.

There is no doubt that Chinese direct investments in India have been rising steadily. From being the 37th largest foreign investor in India in 2011, it has now scaled up to the rank of the 17th largest foreign investor in 2017.

 INDIA-CHINA foreign trade

That appears to be a fast rise in the pecking order, but actually the size of total Chinese investments in India and the annual flows are very little, almost insignificant either as a share of India’s total foreign investment or as a per cent of China’s total investments abroad.

Consider the following numbers. Between April 2000 and March 2017, India received cumulative foreign investments of over $332 billion. Of this, however, China’s share is only $1.63 billion. In 2010-11, China invested only about $2 million in India. That year, India had received total foreign direct investments (FDI) of over $14 billion..

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