Trade with China is turning into a steep welfare loss for India. Already, the trade deficit - straight indicator to show the trade position of the country has registered $53bn deficit with China. Surprisingly, this is happening when the whole world trade is falling. India’s huge trade deficit is more a result of the country’s inability to produce quality manufacturing. Government has launched several steps including the Make in India initiative. At the same time, China has not shown any interest to accommodate Indian imports so that the deficit may come down from the high unsustainable way. Such an official position by Beijing is compelling the government to make some
India and China
China’s official tabloid looking mouthpiece – the Global Times in an article advised India to accept the China Pakistan Economic Corridor (CPEC) project for the welfare of the entire region. No third party is aimed in the project and according to the article, it is unfortunate that the CPEC has opened a new area of confrontation between the two countries. The article seems to be published in the context of External affairs Minister Sushama Swaraj’s protest and India’s concern at the project running through the PoK. The article without concentrating on the economic content of the CPEC, goes on political lines. Midway through the GT reporter who himself auth
Chinese President Xi Ping has congratulated the Maldivian counterpart Abdulla Yameen on the Maldives' 50th Independence Day. Yameen’s administration has recently brought a new law that seems to be specially built for sea reclamation specialist China to hold land in Maldives. The new law allows foreigners with investment of more than a billion to own land, on condition that at least 70 per cent of the area they develop is reclaimed from the sea. Many in the strategic front sees Mr Yameen’s move as an open invitation to China to militarily engage in Indian Ocean. Recently, the President Yameen has dismissed concerns over foreign military expansion under the
China has denied any connection between the Chinese Army- the PLA, and the North East insurgents who made a gruesome attack on Indian security forces last week. The Global Times quoting Chinese officials reacted that any such argument about the connection between the two sides is “absurd”. News paper reports in India earlier quoted the link between Nationalist Socialist Council of Nagaland-Khaplang (NSCN-K) – and the PLA. The strong denial about the PLA’s role came in a Global times article on Wednesday morning. The article has quoted Indian Express report about Indian official claiming recordings of a phone call between a PLA official and an NSCN-K lea
The big loan availed by Airtel from the two Chinese banks strengthens the Asian power’s rising status as a global lender. At the same time, every chance is that the loan will be followed by Airtel’s equipment order from China for its mobile data network expansion. Airtel has secured $2.5 bn from China Development Bank and Industrial Commercial Bank of China during the visit of PM Narendra Modi. In most cases, the loans will be denominated in Renminbi; the Chinese currency. There is every chance that the Airtel loan also will be a renminbi denominated loan. First major loan intake by an Indian company from China was Reliance Power and Reliance Communications, three
In a gesture to create deeper people to people engagement, Prime Minister Narendra Modi has announced e tourist visas for Chinese tourists. The e visas seem to be a one sided gesture in terms of its commitment even though the two countries have signed two dozen agreements covering many areas of cooperation. A notable absentee in the entire engagements so far is India’s views on China’s transcontinental connectivity project – the ‘one belt one road’ project. On the other side, the Chinese leadership also has not publicly raised India’s stand on the matter. The visit of Mr Modi is taking place at a time when China is on the track of extending
China’s ace phone maker Xiaomi’s announcement that Tata group has invested in the company is a big news. For Tata, the investment is a support for Xiaomi’s indianisation efforts. At the same time, China being the Tata owned JLR’s largest market, the investment is a trust creating one. The Xiaomi investment thus will better the phone company’s future in India as well as Tata’s future in China. For most, Xiomi is going to take Samsung in the global market in the coming year. Already, it has emerged as the second largest selling smart phone brand in China, defeating Samsung. Now, an important event is the launch of Letv video streamin
China is planning to construct a railway line to Nepal from Tibet passing through a tunnel beneath Mt Everest. The China Daily has revealed few details about the proposed network that is going to be completed by 2020 at ‘Nepal’s request’. The rail network will produce the first time in history connect between Chinese mainland and Indian sub-continent across the high altitude Himalayas. China has already constructed Karakoram highway through Pakistan. But the turbulence in the region is making it a high risk route for the Chinese. If completed, the Himalayan rail network will be an easy entry point for Chinese goods into India. Besides, the railway line will g
Chinese economy has entered into a new normal but moderate growth phase in its transformation journey to become a developed economy. The new moderate growth is quite slower than the explosive 10 percent growth it has achieved for nearly thirty years till 2010. Premier Li Keqiang has told the Parliament that for this year, the Chinese government is expecting a growth rate of 7. This is below the Indian growth rate for the year. Traces of the new and the inevitable moderate growth phase were appearing for the last several quarters. The economy was growing at 7.5% from 2010 onwards. In 2014, the growth rate was lower than the projected growth. Li has described the new
The rupee has made a badly needed come back against the dollar as the RBI has launched dollar swap for three major public sector refiners. As a result, the Rupee appreciated against the dollar; ending severe depreciation during the previous two days. The RBI revealed that the measure will continue in the coming days as well. A welcome feature of the RBI measure is that the swap facility will be available in the coming days also until a notice from the central bank comes. Technically the effect of the measure is RBI selling of dollars worth $300-500 million in the market daily. The foreign exchange swap window offered by the RBI to three largest refiners is estimated to be
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- Why we need an emergency monetization plan as well?
- NREGS: give respect to the tax payer’s money