India's Focus on Manufacturing to Compete Economically with China: Insights from S Jaishankar

External Affairs Minister S Jaishankar has said that India should concentrate on manufacturing in order to compete with China economically. Prior to Prime Minister Narendra Modi's election in 2014, administrations neglected this important industry.

India's perspective is quite clear that the connections between the two Asian countries would not improve until there is peace and stability in the border regions, he added, noting that tension near the Chinese border has generated "abnormality" in New Delhi-Beijing relations.

"If we must compete with China—which we should—then the answer is to concentrate on domestic manufacturing. Since Modiji took office, our strategy for manufacturing has evolved. Prior to that, manufacturing was not given much attention," Jaishankar said on Monday at a meeting with business executives at a Surat event.

The former professional diplomat turned politician said that there is no other way to challenge China economically while fielding questions from the crowd about his views on India's relationship with the second-largest economy in the world as it approaches USD 5 trillion.

The Southern Gujarat Chamber of Commerce and Industry (SGCCI) hosted a business conference on "Bharat's Economic Rising," where Jaishankar was giving a speech.

"If India is to rise, it will do it by technological means. Robust technology cannot be built upon feeble manufacturing. The Union minister said, "We should prioritize manufacturing above everything else because it is the only viable economic solution.

Former Indian ambassador to China Jaishankar emphasized that Sino-Indian relations have been impacted by border conflict.

"As you are aware, there is hostility near China's border. And as a result, our relationships are now abnormal. Because of this, we firmly believe that the relationship will continue to worsen until there is peace and stability at the border," he said.

In response to a question about New Delhi's efforts to combat terrorism funded from across the border and the country's still tense ties with Pakistan, Jaishankar said that India should never compromise on terrorism.

"Tolerating and justifying (terrorism) is wrong on our part. Counterterrorism is the only viable reaction to terrorism. And in order to make it a deterrence, they have to comprehend this," he said.

In response to a question on the World Trade Organization's survival in light of China's questionable practices of dumping commodities in India and developed nations using the WTO for their own gain, the minister said that while it has unique difficulties, New Delhi should never abandon the international organization.

"The WTO is a recognized and official platform for discussions. Here, we would make our case and cooperate with partners to protect our interests. We had a fishing meetup lately. He said, "We want to look at bilateral and group agreements as well.

During his address at the business conference, Jaishankar emphasized how India's economic standing has improved and it has emerged from the epidemic thanks to government-implemented reforms and COVID-19 policies. As a result, he said, "we are the fastest growing large economy today."

"This is one reason why global perception about India has changed," he said.

The world wants to work with "us in our journey" because of India's leadership position, vision, stability, confidence, and foreign investment levels, the external affairs minister said.

"This is a really fortunate time for us to interact with the world in a variety of contexts and ways. This is the internationally acclaimed India of Chandrayaan and UPI, 5G stack and Covaxin, where the Modi administration will guarantee the security of its citizens everywhere. We have carried out similar actions in Israel, the Sudan, and Ukraine during the COVID-19 outbreak," he said.

Undoubtedly, India is on the rise. As Jaishankar put it, "now is the time for us to see how we connect ourselves with the world and use opportunities and challenges thrown by it."

The former IFS official went on, "I want to assure you that there has been a significant shift in global perceptions of India."

The United Arab Emirates' (UAE) perspective on India has evolved during the last ten years. According to Jaishankar, trade volume between the UAE and India has surpassed USD 80 billion since the two nations signed a free trade agreement.

After Indian Prime Minister Modi's 2015 visit to the United Arab Emirates—the first since Indira Gandhi's 1981 visit—the situation took a turn for the better, he said.

He said that the US and India have a link when it comes to technology and supported his claim with the details of a roundtable discussion on the subject held at the White House during PM Modi's visit.

The nation is in a unique position because of an agreement made during the G-20 meeting last year to establish an economic corridor between India and Europe via Saudi Arabia and the United Arab Emirates, as well as partnerships with the west on cutting-edge technology like semiconductors and drones.

According to Jaishankar, these nations "believe that India is a unique, non-replaceable partner and (hence they) want to work with India at any cost."

An FTA with India is something that many nations want to do. Numerous conversations are in progress, but the minister said, "We think we will only sign such free trade agreements (FTAs) when the advantages to us are obvious and we stand to gain nothing by providing opportunities for dumping.

According to him, India wants to safeguard the interests of its citizens who are traveling overseas and make sure they get equitable treatment since Indian physicians and engineers are in high demand worldwide.

We sign mobility agreements with several nations in order to do this. We have signed mobility agreements with Germany, Austria, Italy, France, and Australia throughout the last two years. We believe that opportunities may be found both domestically and abroad, and they can take many different shapes "added Jaishankar.