With India aiming to boost their exports to the USA, India's Chief Economic Advisor, V Anantha Nageswaran suggested that the country needs to figure out to integrate China into their supply chain, before thinking about getting integrated into global supply chain. While speaking at an event organized by ASSOCHAM, CEA highlighted that China has made itself indispensable in the global supply chain ecosystem with years of hard work.
"You cannot get out of the sense of being part of the China supply chain, if you have to become part of the global supply chain. So one has to first resolve the question of, how do we integrate China into our supply chain, before we think about how to integrate ourselves in the global supply chain," said CEA.
With the newly elected US President Donald Trump threatening to impose heavy tariff on Chinese imports, several countries have been gearing up to boost their export to the USA. India has been no different either. Indian government and several other experts have been extremely optimistic about enhancing their trade with the USA. While the country is gearing up to boost the trade relation with the USA, the skewed ratio of trade with China can't be ignored.
"How do we deal with this challenge of China? Simultaneously as exports to the US picked up, imports from China also picked up. In other words, the importance of China's supply chain for countries, which are now trying to increase their exports to the United States, simultaneously, their imports from China have also picked up. So in other words, you cannot get out of the sense of being part of the China supply chain, if you have to become part of the global supply chain," added Nageswaran.
China has also emerged as India's top import source during the quarter of April-September 2024, as per the data of the Commerce Ministry. China has now become the India's top import source with USD 56.29 billion in shipments from April to September this fiscal. While the US is the leading export destination, with goods worth USD 40.38 billion.
The road to become an eminent player in the global supply chain won't be devoid of hurdles for India as China has established its dominance with decades of hard work.
"It is a challenge, because they have done a hard work in the last 30 years of making themselves extremely indispensable and important in the global supply chain. In top five countries in many of the technology areas, radio frequency, optical communications, AI, distributed ledgers, data analytics, the top five countries in many areas happens to be China. India is there, number third position, but the market shares, the top five countries, is quite high, " mentioned CEA.
